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2015 (11) TMI 330 - AT - Service TaxLevy of penalty for delayed payment of service tax - Suppression of facts - appellants are engaged in the manufacture of Detergent Cakes/Powder, Scouring Powder/Bar and were procuring the raw material i.e. Linear Alkyl Benzene (LAB) from M/s.Reliance Industries Ltd., Gujarat to their unit at Ban Majra and Majra - appellants were on mistaken belief that M/s.Reliance was paying the eservice tax - Due tax along with interest paid before issuance of SCN - Held that:- Appellants have paid service tax alongwith interest prior to issuance of show cause notice. Further, the service tax was voluntarily paid by them and the same was informed to the department vide their letter dated 7.6.2011. The Department has not been able to establish any suppression of facts with intention to evade payment of duty on the part of the appellant. In such situation, the imposition of penalty is not warranted. In CCE, Bangalore vs. Master Kleen-[2011 (9) TMI 788 - KARNATAKA HIGH COURT] it has been held that no show cause notice could be issued for imposition of penalty when service tax alongwith interest is paid before issuance of show cause notice. Applying the ratio laid in the above case, and taking into consideration the facts presented, I am of the view that the penalty imposed is unjustified - impugned order is set aside - Decided against Revenue.
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