Per : Justice G. Raghuram; The adjudicating authority adjudicated by order dated 15.11.2011 and the appellate Commissioner concurred by order dated 11.04.2012 that the appellant herein is liable to be visited with penalties under Sections 76, 77 and 78 of the Finance Act, 1994. The conclusion of the adjudicating authority which was reversed by the appellate authority only to the extent of imposition of penalty under Section 76 by confirming penalties under Sections 77 and 78 of the Act.
2. The appellant is a Service tax registrant and recipient of Goods Transport Agency (GTA) service and Business Auxiliary and other services. These services are received by entities having permanent establishment overseas. In the circumstances, it is admitted position that under the provisions of Section 66A of the Act, the appellant, as a recipient of the taxable services from an overseas entity, is liable to remit service tax. The appellant however, failed to remit service tax within stipulated period but remitted the service tax along with corollary interest, when it was sensitised about the liability during the course of audit by the Revenue; and much prior to the issue of show cause notice. When the proceedings were initiated for recovery of penalties, petitioner claimed immunity under Section 73 (3) of the Act, the claim went unheeded by the adjudicating authority and by the appellate authority as well.
3. In view of the clear and unambiguous provisions of Section 73 (3) of the Act and in the absence of any circumstances justifying exclusion of this provision and invocation of provisions of Section 73 (4) of the Act, there being no such circumstances adverted to in the adjudication or the appellate order, initiation of proceedings for imposition of penalties is unwarranted.
4. In aforesaid analysis, the adjudication order as confirmed in appeal imposing penalties on the petitioner under Section 77 and 78 of the Act is unsustainable and accordingly, quashed. Appeal is allowed in the circumstances without costs. (Dictated and pronounced in the Court) (Justice G. Raghuram) President .KL