Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2018 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (11) TMI 1927 - AT - Service TaxLevy of penalties under Section 76, 77 and 78 of the Act - GTA Service - reverse charge mechanism - Service tax deposited before issuance of SCN - HELD THAT:- The Ld. DR does not dispute the fact which is on record, that service tax amount has been duly deposited, either by the transport agencies or by the assessee for the remaining portion, well before the issue of Show Cause Notice though belatedly for which interest has also been paid. It is also not the case of the Revenue that they are seeking double payment of tax which stood deposited by the transport agencies as reimbursed and borne by the assessee manufacturers receiving transport service which fact has also been appreciated by the Ld. Commissioner in the impugned Original Order. When service tax amount has been deposited before the Show Cause Notice, no penalty should be imposed in view of the law as laid down by the Hon’ble Karnataka High Court in case of COMMISSIONER OF C. EX., BANGALORE-II VERSUS PUSHPADEEP ENTERPRISES [2012 (10) TMI 496 - KARNATAKA HIGH COURT] relied upon by the assessee, which is squarely applicable to the facts of the present case. There are also force in the argument of the assessee that in terms of the provisions of Section 80 of the Act, they are entitled to full waiver of penalty under Section 78 as well as Section 76 and 77 of the Act, inasmuch there was a reasonable case for non payment of tax as the very levy of service tax on GTA service under reverse charge was a new concept. Thus, there are no reason to burden the assessee with penalty under Section 78 of the Act and the same is therefore set aside - appeal of Revenue dismissed.
|