TMI Blog2019 (3) TMI 165X X X X Extracts X X X X X X X X Extracts X X X X ..... ys that if tax is paid along with interest before issuance of the show cause notice, then in that case, show cause notice shall not be issued - penalty not imposable - appeal allowed - decided in favor of appellant. - ST/22018/2018-SM - Final Order No. 20230/2019 - Dated:- 28-2-2019 - MR. S.S GARG, JUDICIAL MEMBER Shri Rajesh Kumar, CA For the Appellant Shri K. Murali, Superintendent(AR) For the Respondent ORDER Per: S.S GARG The present appeal is directed against the impugned order dt. 10/09/2018 passed by the Commissioner(Appeals) whereby the Commissioner(Appeals) has rejected the appeal of the appellant. 2. Briefly the facts of the present case are that the appellants are engaged in providing services ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the tune of ₹ 17,48,317/-. He further submitted that though the appellant had confusion regarding the taxability of many elements like incidental charges, insurance commission and was of the view that the same is not liable to service tax. He further submitted that though there was a confusion, but without going into the reconciliation aspect , the appellant decided to pay the service tax along with interest and accordingly paid entire service tax of ₹ 17,48,317/- and interest of ₹ 4,40,553/- on 28/03/2017 i.e. before the issuance of showcause notice which was issued on 29/06/2017. He further submitted that once the entire service tax along with interest has been paid before issue of show-cause notice, then the show-cau ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , show cause notice shall not be issued. In this case, I find that the contention of the appellant that he bona fidely believed that he is not liable to pay service tax but during the audit, the audit party informed him that he is liable to pay service tax, then he immediately paid the entire service tax along with interest. Except mere allegation of suppression, the Department did not bring any material on record to prove that there was suppression and concealment of facts to evade payment of tax. Consequently, in my opinion, the imposition of penalty under Section 78 of the Act is not justified and bad in law. Moreover, in the impugned order, the learned Commissioner (Appeals) has not recorded any finding on suppression of facts by the ap ..... X X X X Extracts X X X X X X X X Extracts X X X X
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