9911796707
TMI Blog2012 (7) TMI 78X X X X Extracts X X X X X X X X Extracts X X X X ..... ken up. As soon as the investigation was taken up and appellant was informed of the liability, the appellant paid the service tax and the interest on 27.02.06 and 03.03.06. Thereafter proceedings were initiated by issue of show cause notice which resulted in confirmation of the demand of service tax and appropriation of the amount paid by the appellant and also in imposition of penalty under Section 78 of Finance Act, 1994. Appellants paid 25% of the service tax towards penalty and thereby paid of all the dues resulting from the adjudication order passed by the Additional Commissioner. However, the Commissioner in exercise of his powers under Section 84 of Finance Act, 1994, proposed a revision of the order passed by the Additional Commissi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is a case where even penalty under Section 78 was not payable. Even then the appellant paid 25% of service tax towards penalty so that unnecessary litigation is avoided and dispute does not arise. It was submitted that there was a confusion in the minds of the operators of service stations up to 31.10.04 as to whether service tax was payable on this service or not since appellants had felt that they were commission agents. After the amendment of the law on 10.09.04, the service tax was being paid regularly by the appellant and the very fact that the dispute relates to the period from 01.07.03 to 31.10.04 itself would show that the appellants were paying tax regularly. It is also noticed in the records that appellants were addressed by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s soon as advised to do so, it would show his bonafide belief and therefore provisions of Section 73(3) can be invoked and no penalty is imposable under Section 76 and Section 78 of Finance Act, 1994. Further, the circular issued by the Board on 03.10.07 also provides that where an assessee pays the service tax with interest, no further action need to be taken. In this case, I find that appellant has paid even the penalty and is not even challenging the same. Having regard to the facts and circumstances of this case and the approach adopted by the appellant as seen from the records I find that appellant intended to avoid litigation, to pay the service tax amount as per the advice given by the department and further they have also paid inter ..... X X X X Extracts X X X X X X X X Extracts X X X X
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