Custom, Excise & Service Tax Tribunal
M/S Mahindra Forgings Ltd vs Cce, Pune I on 23 December, 2013
IN THE CUSTOMS, EXCISE AND SERVECE TAX APPELLATE TRIBUNAL, WEST ZONAL BENCH AT MUMBAI COURT NO. II
APPEAL NO. ST/183/09
(Arising out of Order-in-Appeal No. P-I/VSK/105/2009 dated 20.04.2009 passed by the Commissioner of Central Excise (Appeals) Pune I.)
For approval and signature: Honble Shri Anil Choudhary, Member (Judicial)
1. Whether Press Reporters may be allowed to see : No the Order for publication as per Rule 27 of the CESTAT (Procedure) Rules, 1982?
2. Whether it should be released under Rule 27 of the : CESTAT (Procedure) Rules, 1982 for Publication in any authoritative report or not?
3. Whether Their Lordships wish to see the fair copy : yes of the order?
4. Whether Order is to be circulated to the Departmental : yes authorities?
M/s Mahindra Forgings Ltd.
: Appellant
Versus
CCE, Pune I
: Respondent
Appearance Shri Vinaj Jain, C.A. : For Appellant Shri Rakesh Goyal, Addl. Commissioner (A.R.) : For Respondents CORAM:
Honble Shri Anil Choudhary, Member (Judicial) Date of Hearing : 23.12.2013 Date of Decision: 23.12.2013 ORDER NO.......................................................
Per: Anil Choudhary:
Brief facts of the case are that M/s Mahindra Forgings Ltd. are engaged in the manufacturing of forgings and machining falling under chapter 732919.90 and 870899.00 of Central Excise Tariff Act, 1985. They are holding Central Excise registration and Service Tax registration under consulting engineer services.
2. On the basis of intelligence that the assessee had not paid Service Tax on technical consultancy service received from outside India during 2005-06 and 2006-07, the officers visited the unit on 03.07.2007 and scrutinize the records. It was revealed that the assessee had not paid Service Tax on the amount paid toward consultancy services received during the period 2005-06 and 2006-07.
3. Provisions for the levy of Service Tax on the services received from outside India, was clarified by an Explanation of sub clause (g) of clause 105 of Section 65 of the Finance Act, 1994 (hereinafter referred to as the said Act) and the provision to that effect was inserted with effect from 16.06.2005 in the Finance Act, 2005.
4. During the period of dispute the leviability of Service Tax in case of import of services was disputed. The matter was finally settled by amendment under Finance Act, 2005 and Service Tax was not required to be paid on import of services prior to 18.04.2006, the provision came under Section 66A of the Finance Act. In view of the Bombay High Court in case of UOI Vs. T.P.L. Industries Ltd., 2007 (214) ELT 506 (Raj) held that whether duty was paid prior to issue of Show-cause notice, no penalty was imposable. Further the facts of the case are that the appellant have taken over the industrial unit from M/s Amforge Ltd. in the month of November, 2006. Further fact is that, some part of the Service Tax was paid by the previous management before taking over and balance of Service Tax was paid by the present appellant pointed out for some period prior to 18.04.2006. Further facts that the appellant has paid the Service Tax before issue of show-cause notice which is not in dispute.
5. Considering the rival submissions, in view of the leviability for reverse charges under litigation, charges of transaction i.e. sufficient cause under Section 76 (3)(3) where tax has been paid with interest, then no show-cause notice has to be issued in the matter. The appeal is allowed to extent of setting aside the penalties under Section 78 of the Finance Act, 1994. Thus the appeal is allowed for aforementioned facts.
(Dictated and pronounced in open Court) (Anil Choudhary) Member (Judicial) Sp Brief facts of the case are that M/s Mahindra Forgings Ltd. GAT No. 856-860, Chakan, Ambethan Road, Taluka Khed, Dist. Pune (hereinafter referred to as the assesee) are engaged in the manufacturing of forgings and machining falling under chapter 732919.90 and 870899.00 of Central Excise Tariff Act, 1985. They are holding Central Excise registration No. AABCM6632JXM002 and Service Tax registration No. AABCM6632JST002 under consulting engineer services.
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