13. From above, it appears that the noticee has contravened the following provisions:
Section 68 of Finance Act, 1994 read with Rule 6 of Service Tax Rules, 1994 in as much as they failed to pay the service tax on the services of installation.
Section 69 of Finance Act, 1994 read with Rule 4 of the Service Tax Rules, 1994 in as much as they failed to register themselves for the purpose of service tax.
Section 70 of Finance Act, 1994 read with Rule 5 and Rule 7 of Service Tax Rules, 1994 in as much as they failed to maintain proper records and file required returns.
The noticee never declared to the department regarding installation
services received by them from a foreign company, with a sole intention to evade the payment of service tax. Therefore, the proviso to Section 73 of the Finance Act, 1994 is invoked and extended period is applicable in the case, making the noticee liable to penal action under Section 73 of the Finance Act, 1994.
Therefore, the noticee was asked to show cause to the Additional Commissioner, Central Excise & Customs, Rajkot having his office at 6th Floor, "Central Excise Bhavan", Race Course Ring Road, Rajkot, within 30 days from receipt of this Notice, as to why:
The service tax Rs.11,93,471/- should not be recovered from them under Section 73 of the Finance Act, 1994 along with interest as chargeable under Section 75 of the Finance Act, 1994.
Penalty should not be imposed upon them under Section 78 of the Finance Act, 1994.
