TMI Blog2013 (12) TMI 1374X X X X Extracts X X X X X X X X Extracts X X X X ..... without any delay. Having regard to these facts and having regard to the fact that appellant was eligible for Cenvat credit, we find that this was a case where provisions of Section 73(3) was applicable and no show cause notice should have been issued. Further we also find that this is a case where appellants have been able to show reasonable cause for non-payment of the tax even if it is assumed that there was delay in payment in view of the revenue-neutral situation and lack of availability of qualified staff - amount paid towards Service Tax and interest thereon demanded and appropriated is sustained and penalties imposed on the appellant are set aside - Decided partly in favour of assessee. - ST/407/2012 - Final Order No. A/10063/2013 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The appellant paid the Service Tax amounting to Rs. 21,76,361/- vide challan dated 10-5-2008 of Rs. 14,23,038/-, challan No. 6 dated 26-7-2008 of Rs. 1,37,359/- challan No. 8 dated 25-8-2008 of Rs. 6,15,964/-. 2. Thereafter proceedings were initiated by issuing a show cause notice proposing to appropriate the Service Tax and interest paid towards the liability of the appellant and also proposing to impose penalty under Sections 77 and 78 of Finance Act, 1994. After adjudication proceedings and appeal proceedings wherein the Service Tax paid with interest has been confirmed and appropriated and penalties under Sections 77 and 78 have also been imposed the appellant in appeal before us. 3. As regards liability to Service Tax, there is n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t have qualified staff to look after these aspects and when the Assistant Commissioner pointed out, appellants found that they were liable to pay and the first payment was made in February, 2008 for all the amounts paid by them to the foreign service provider up to that date. It is his submission that the amounts paid subsequently relate to the amount paid by them for services subsequent to February 2008. He also submits that the show cause notice was issued in 2011 i.e. much beyond the normal period of limitation. In this case appellant was eligible for Cenvat credit of Service Tax paid by them and therefore the situation was one of revenue-neutrality. Therefore there was no benefit for the appellant by delaying paying of Service Tax or by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Service Tax after the amounts were paid by them for the services received from time to time and discharged the liability in full which is not in dispute would show that extended period could not have been invoked in this case. Moreover entire duty liability was discharged by July, 2008 which is less than nine months from the visit of the officer which would again show that the payment was made promptly without any delay. Having regard to these facts and having regard to the fact that appellant was eligible for Cenvat credit, we find that this was a case where provisions of Section 73(3) was applicable and no show cause notice should have been issued. Further we also find that this is a case where appellants have been able to show reasonable ..... X X X X Extracts X X X X X X X X Extracts X X X X
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