TMI Blog2010 (1) TMI 339X X X X Extracts X X X X X X X X Extracts X X X X ..... ods Transport Agency Service" (GTA) during the period 1-1-2005 to 31-3-2006 without following the statutory formalities including payment of service tax due. During the material period, appellants had provided services to M/s. Bharath Mines Minerals, a proprietorship concern. During investigation the appellants paid service tax due of Rs. 3,35,152/- (Rs. 3,28,581/- service tax + Rs. 6571/- Education Cess) and on 29-6-2006 paid the applicable interest of Rs. 46,716/-. After due process of law, the original authority confirmed the above liability against the appellants but refrained from imposing any penalty on them relying on several case laws which had held that once the assessee had made good the excise duty not paid/short paid along wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... due along with applicable interest before the issue of show cause notice, no further proceedings should be initiated against the appellant unless there existed fraud, collusion, suppression of facts, willful mis-statement etc. In the instant case, since there are no such findings against the assessee, the proceedings should have been treated to be concluded on 29-6-2006 when the appellant paid the tax due along with applicable interest. 3. He also relies on the following case law, wherein it was held in similar circumstances that penalties were not imposable on the assessee by the Revisional Authority : (i) CCE, Jalandhar v. Darmania Enterprises - 2009 (14) S.T.R. 741 (P H) (ii) Majestic Mobikes Pvt. Ltd. v. CST, Bangalore - 2008 (11 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erabhadreshwara Transport, Hospet have not registered under Service Tax and not paid Service Tax for the above said service from 1-1-2005, as we are under the impression that M/s. Bharath Mines Minerals, Bellary, are paying the Service Tax on goods transport service with effective from 1-1-2005 in respect of goods transported by us. As M/s. Bharath Mines Minerals, Bellary, have not paid service tax on freight charges incurred by them because, it is a proprietorship firm, I being a Goods Transport Agency for M/s. Bharath Mines Minerals, Bellary, going to pay service tax and the same will be paid within seven days, on the said taxable service along with interest." 5.1 The only indication this statement gives is that the appellant was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e any service tax has not been levied or paid or has been short-levied or short-paid or erroneously refunded, the person chargeable with the service tax, or the person to whom such tax refund has erroneously been made, may pay the amount of such service tax, chargeable or erroneously refunded, on the basis of his own ascertainment thereof, or on the basis of tax ascertained by a Central Excise Officer before service of notice on him under sub-section (1) in respect of such service tax, and inform the [Central Excise Officer] of such payment in writing, who, on receipt of such information shall not serve any notice under sub-section (1) in respect of the amount so paid :" 6. I also find that the appellant's case is amply supported by the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r action on the part "of the appellant to prove reasonable cause is warranted. What is reasonable cause? The Supreme Court in Motilal Padampat Sugar Mills Co. Ltd. v. State of Uttar Pradesh - 1978 (118) ITR 326 (S.C.) held that "it is well settled law that 'reasonable cause' can be reasonably said to be a cause which prevents a man of average intelligence and ordinary prudence acting under normal circumstances without negligence or inaction or want of bona fide." It was held that in the facts of the case, the appellant was entitled to relief under Section 80 of the Act which provided for waiver of various penalties prescribed under Act. 7. In view of the above discussion I find that the impugned order imposing penalties on the appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X
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