TMI Blog2018 (6) TMI 1359X X X X Extracts X X X X X X X X Extracts X X X X ..... (3) read with Explanation 2 of the Finance Act, 1994. Hon'ble Karnataka High Court in the case of Adecco Flexione Workforce Solutions Ltd. [2011 (9) TMI 114 - KARNATAKA HIGH COURT] has held that once the service tax along with interest is paid before the issue of show-cause notice, then the Department should not issue show-cause notice. Penalties not sustainable - appeal allowed - decided in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... free service coupon and the manufacturer debits the amount of the service coupons to his Profit Loss Account and pays sales tax/VAT on the sale price and on every purchase of vehicle from the manufacturer, appellants are bound to carry out free service for which they are paid some amount by the manufacturer. The appellant further realized that his amount has already borne tax at the time of sale ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r submitted that imposition of penalties is also unwarranted. In support of this submission, he relied upon the following decisions:- i. CST Vs. C. Ahead Info Technologies India P. Ltd. [2017(47) STR 125(Kar.)] ii. CCE ST, LTU Vs. Adecco Flexione Workforce Solutions Ltd. [2012(26) STR 3 (Kar.)] iii. CST Vs. Master Kleen [2012(25) STR 439 (Kar.)] iv Bhoruka Aluinium Ltd. Vs. CCE ST [201 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ribunal in the case of Bhoruka Aluminium Ltd. (supra), after relying upon the decision of the Karnataka High Court has held that if the service tax is paid before the issue of show-cause notice, then the penalties cannot be imposed. By following the ratios of the above said decisions we are of the considered opinion that the impugned order is not sustainable in law so far as the imposition of pena ..... X X X X Extracts X X X X X X X X Extracts X X X X
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