PARAS PHARMACEUTICALS LIMITED Vs. COMMISSIONER OF SERVICE TAX

JUDGEMENT

(1.) AFTER dispensing with the condition of pre -deposit, we proceed to decide the appeal with the consent of both the sides.

(2.) AFTER hearing both the sides duly represented by Shri Jigar Shah, learned advocate appearing for the Appellants and Shri S.K. Mall, learned DR appearing for the Revenue, we find that the Appellants imported Business Auxiliary Services and advertising services prior to 18.04.2006. As a result of audit objection, the Revenue entertained a view that such services were taxable. Accordingly, Appellants deposited entire amount of service tax.

(3.) SUBSEQUENTLY , the audit again raised an objection as regards the quantification of the interest amount. Accordingly, another show cause notice dated 10.09.2008 was issued to the Appellants proposing to confirm the higher interest amount as also to impose penalty against the Appellant under Section 77 and 78 of the Finance Act, 1994. The Appellants, before the original adjudicating authority, did not contest the re -quantification of interest but submitted that penalties cannot be imposed upon them, the same very issue having been decided by the Revenue in the earlier round of litigation. However, without discussing the said plea of the Appellant, the original adjudicating authority imposed penalties under various sections.