TMI Blog2014 (2) TMI 713X X X X Extracts X X X X X X X X Extracts X X X X ..... h Court also in the case of CCE & ST, LTU, Bangalore Vs ADECCO Flexione Work Force Solutions Ltd. - [2011 (9) TMI 114 - KARNATAKA HIGH COURT]. - Levy of penalty set aside. - Appeal No.ST/605/2009 - FINAL ORDER No.40137/2014 - Dated:- 12-2-2014 - Shri Mathew John, J. For the Appellant : Shri N.Viswanathan, Advocate For the Respondent : Ms. Indira Sisupal, AC (DR) JUDGEMENT 1. In this case, the appellant was providing a few taxable services and was registered under service tax laws from 2001 onwards. During the audit of their accounts held in May 2007 short payment of service tax was pointed out by the audit team on three grounds namely,- (i) tax not paid on amount billed and payments received in respect of a few invoices ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thought that there was no need to pay service tax on advances received. He also submits that there was legal conflict between provisions in section 64 (3) as also various clauses under section 65 (105). In section 64 (3), the clause "services to be provided" was not included. Though such expression was introduced in section 65(105) with effect from 13-5-2005. However, when the issue was pointed out, they paid service tax along with interest because they did not want to pursue any litigation in the matter. 5. On the third issue, he submits that generally drawings are treated as goods and therefore the appellant thought that no service tax was payable on this item but on this item also, when it was pointed out by audit, they immediately pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Flight Couriers Ltd. - 2007 (8) STR 225 (Kar.) in support of her argument. 7. I have considered submissions on both sides. It is obvious that the appellant paid entire tax liability and interest. This inference is drawn because the impugned order does not involve demand for these but just imposes penalty for delay in payment. When provisions similar to section 73 (3) was introduced in Central Excise Act, 1944 as section 11A (2B) in the year 2001, it was clarified that these provisions are meant for encouraging immediate realization of short payments detected by audit teams so that whoever discharges the short paid tax immediately need not get entangled in protracted litigations. Therefore, unless there is a case of active suppression, pr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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