TMI Blog2019 (2) TMI 682X X X X Extracts X X X X X X X X Extracts X X X X ..... balance sheets were on accrual basis. The appellant had paid the service tax as demanded along with interest - penalty waived by invoking section 80 - appeal allowed - decided in favor of appellant. - APPEAL No. ST/171/2009 - A/30117/2019 - Dated:- 28-1-2019 - Mr. M.V. RAVINDRAN, MEMBER (JUDICIAL) And Mr. P.V. SUBBA RAO, MEMBER (TECHNICAL) Shri R. Muralidhar, Advocate for the appellant Shri N. Bhanu Kiran, Asst. Commissioner/AR for the Respondent. ORDER Per: Mr. P. Venkata Subba Rao 1. The appellant is a proprietary firm providing security services and had taken service tax registration and has been paying service tax and filing returns. For the period 2003-04 to 2006-07, their records were audited by the d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing cum service tax benefit. A show cause notice was issued on 29.04.2008 demanding service tax of ₹ 83,38,746/- and they had paid the full amount before the issue of show cause notice. It is erroneously recorded in the show cause notice that they had paid only ₹ 20,00,000/- before issue of show cause notice. Thereafter, they also paid the interest amount of ₹ 19,52,437/- on 01.08.2008 during the course of adjudication. Ld. Counsel submits that they are not contesting either the demand of service tax or interest, both of which they have paid in full as demanded by the department. The Adjudicating authority has imposed penalty under section 78, equivalent to the amount of duty and also imposed a penalty under section 77 of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rguments on both sides and perused the records. Although the appellant initially disputed the service tax liability on the ground that they had not yet received the amounts from their clients, that they paid the full amount of service tax as demanded and interest. Ld. Counsel only prays for setting aside the penalties invoking the provisions under section 80 on the ground that they have a reasonable cause. Ld. DR contends that payment of service tax or interest during the adjudication or even prior to issue of show cause notice is not a reasonable cause for invoking section 80 for waiving the penalties. In this case, we find that the appellant is a retired Hawaldar of CISF and it would not be unreasonable to expect that he may not be fully ..... X X X X Extracts X X X X X X X X Extracts X X X X
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