BOHRA PRATISTHAN PVT. LTD. Vs. CCE

JUDGEMENT

(1.) THIS appeal is directed against the order in appeal dated 10.5.06.

(2.) THE issue involved in this case is regarding the service tax liability on the appellants in respect of the services provided by them as On Line information as Data base Access and retrieval services. The appellants had obtained registration as provider of this particular services in October, 2001. They were filing the service tax returns and paying the service tax on the amount collected from the customers in respect of their services. It was noticed by the revenue that the appellants had not paid the service tax on the one time charges which were recovered by the appellants from the customers. On being pointed out by the Revenue, the appellants discharged the entire service tax liability on 14.1.04 and also discharged interest liability for such tax on 24.3.2004. Revenue issued show cause notice to the appellants on 5.5.2005 for appropriation of the amount and also for imposition of penalty. The adjudicating authority confirmed the same, appropriated the amount paid by the appellants and imposed penalties on the appellants under the provisions of Section 76 and 78 of the Finance Act, 1994. On an appeal, the Commissioner (Appeals) also concurred with the findings of the adjudicating authority.

(3.) THE authorized representative appearing on behalf of the appellant submits that they are not challenging the service tax liability and the interest liability. It is their submission that their challenge is towards the imposition of penalties. He submits that, having paid the service tax liability and interest before 30.10.04, they were covered by extra ordinary friendly scheme of service tax as introduced by the Government of India. He relied upon the decision of the Tribunal in the case of CCE, Bhopal v. Bharat Security Services and Amit Kumar v. CCE Jaipur -II 2006 (2) STR 506.