2015 (12) TMI 885

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..... case. The department has proceeded only for the purpose of imposing penalty. The amount was paid even before show-cause notice was issued along with interest. If the appellant were to contest the issue on classification at that stage itself the benefit of limiting the demand to normal period also could have arisen and further, whether demand itself was justified or not could have been examined. In .....

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..... ant : Mr Vinayak Hegde, CA For the Respondent : Mr Pakshi Rajan, Addl Commissioner, AR ORDER Per: B S V Murthy: The appellant is a steamer agent and has been discharging service tax under the categories of steamer agent service, cargo handling service and business auxiliary service. During the course of audit of the records of the appellants, it was found that during the years 200 .....

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..... ng authority did not make any observations but simply confirmed the demand and imposed penalty under Section 78 of the Finance Act, 1994. Before the learned Commissioner (A) also the same stand was taken and the learned Commissioner (A) observed that this was only an afterthought on the part of the appellant and there could not have been any bona fide belief. Further, he also confirmed the demand .....

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..... nable to understand the logic behind this observation. Apparently, the appellants paid the amount when audit objection was raised to settle the issue rather than pursuing the matter and litigating further in this case. The department has proceeded only for the purpose of imposing penalty. The amount was paid even before show-cause notice was issued along with interest. If the appellant were to con .....

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..... ve entertained a bona fide belief that what is being rendered is a GTA service. In such a situation, there is reasonable cause for non-payment of tax and since appellant has paid entire amount of tax and interest before issue of show-cause notice, penalty can be waived by invoking the provisions of Section 80 of Finance Act. Accordingly, the appeal is allowed while confirming the demand for tax an .....

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