TMI Blog2015 (4) TMI 823X X X X Extracts X X X X X X X X Extracts X X X X ..... s the appellant were under the bonafide belief that they are not liable to pay service tax under reverse charge mechanism as good transport agency service does not exceed ₹ 10 lakhs. Therefore, I hold that the show cause notice was not required to be issued under section 73(3) of the Finance Act, 1994. In these circumstances, penalties are not imposable on the appellant. Further, I find that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ods and they are availing goods transport agency services but they are not paying service tax on reverse charge mechanism. Later on, they took registration on 3.1.2012 and started paying service tax on goods transport agency services on reverse charge mechanism. Investigation was conducted on 8.2.12 and it was found that during the period 2007 to 2012, the appellant has not paid Service tax under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... did not pay the service tax. When they released that they are required to pay service tax, immediately they took the registration and paid service tax with interest. In these circumstances, the show cause notice was not required to be issued as per Section 73 of the Act. In these circumstances, penalties should be set aside. 4. On the other hand, learned AR reiterated the finding of the impugn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat appellant is not contesting the penalty imposed under section 78 of the Act. Therefore the benefit of this order will not be available for the penalty imposed under section 78 of the Act. In these circumstances, the penalties imposed on the appellant under section 70 and 77 are set aside. Appeal is allowed in these terms. (Dictated and pronounced in the open court.) - - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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