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2019 (7) TMI 1660 - AT - Service TaxIssuance of SCN - Levy of penalty - entire Service Tax along with interest much before the issuance of the SCN - mining services - HELD THAT:- The Appellant has already paid the entire Service Tax along with interest much before the issuance of the SCN and hence there is no cause of action to issue the SCN by the department. Also, the ‘mining services’ was introduced in June 2007 and there was lot of confusion on the actual taxability of the said services. However, once it was ascertained by the department that tax is payable, the Appellant did not dispute its liability and made immediate attempt to pay the same with interest. The issue at hand is no more res integra and is covered by the decision of the Tribunal in the case of COMMISSIONER OF SERVICE TAX, KOLKATA VERSUS RUHIT SHUKLA & ASSOCIATED [2007 (3) TMI 164 - CESTAT, KOLKATA] where it was held that There is no difference of opinion about realization of levy from the Respondent in view of incidence of the levy by specific letters of law. But discharge of tax liability was delayed which appears to be neither deliberate nor willful or for knowable breach of law. The levy was at the initial stage and subject to Judicial review by various High Court. It was certainly a matter of confusion by tax payers on various aspects of law at the infancy stage of enactment, the imposition of penalty is not called for. The facts of the present case are squarely covered by the aforesaid decision of the Tribunal - the impugned orders are set aside to the extent of confirmation of penalty on the Appellants - Appeal allowed in part.
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