Held - The appellant have admittedly paid the service tax on the service received from foreign country in terms of Section 66A on reverse charge basis and interest thereupon was also paid before issuance of show cause notice. The issue on merit is whether there is levy of service tax on reverse charge mechanism on the service received from the overseas. This issue has undergone litigation in various cases before various forums. Finally, the ho.....

Held - The issue involved in this appeal is no more res integra in view of the decision of the Tribunal in the case of Bhoruka Aluminium Limited Vs. CCEx. &S.Tax, Mysore reported in [2017 (51)STR 418 (Tri.Bangalore)]. The relevant paras of the said decision are reproduced below :-

"Section 73(3) is very clear as it says that if tax is paid along with interest before issuance of the show cause notice, then in that case, show cause not.....

Held: The commission in respect of volume purchase by second level of distributor 3 for the period from 2006-07 to 2010-11 earned by the Appellant is to the tune of Rs.42,78,252/- and Service Tax on the same was Rs.1,98,625/- and the same has been paid along with interest before issuance of Show Cause Notice.

Therefore hold that the proceedings should have been concluded before issuance of the Show Cause Notice. I therefore set aside the.....

Held - It is undisputed that the appellant had, initially, not paid service tax on the services received under reverse charge mechanism for the relevant period and had, on being pointed out by DGCEI, immediately paid the same with interest and took Cenvat credit of the service tax paid. It is also undisputed that the Cenvat credit was available to it. Needless to say that the appellant could not have and has not taken Cenvat credit of the inte.....

Held - I find that Section 73(3) is very clear as it says that if tax is paid along with interest before issuance of the show-cause notice, then in that case, show-cause notice shall not be issued. In this case, I find that the contention of the appellant that he bonafide believed that he is not liable to pay service tax but during the audit, the audit party informed him that he is liable to pay service tax, then he immediately paid the entire.....

Held - The provisions of Section 73(3) of the Finance Act, 1994 say that when the liability of tax has been paid by an assessee before service of notice on him under Section 73(1) and when the said assessee has informed the department of such payment in writing, the Department was not to serve any notice under Section 73(1). However it is right that Section 73(4) also makes it clear that wherever there has been such non-payment by reason of fr.....