TMI Blog2019 (6) TMI 206X X X X Extracts X X X X X X X X Extracts X X X X ..... e manufacture of their final products. For such inward transportation of goods, they are liable to pay service tax under reverse charge basis - demand of service tax alongwith interest upheld. Penalty - HELD THAT:- The appellant has submitted that the appellants were not aware of the fact that they are liable to pay service tax on such freight charges under reverse charge basis. On perusal of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on which transportation charges were paid by them and were liable to pay service tax as service recipient under reverse charge basis. A Show Cause Notice was issued to them proposing to demand the service tax along with interest and also for imposing penalties. 2. After due process of law, the Original Authority confirmed the demand, interest and imposed penalty under Section 78 of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with interest, is praying only to set aside the penalty imposed under Section 78 of the Finance Act, 1994. 4. Ld. AR Shri. L. Nandakumar appearing on behalf of the respondent supported the findings in the impugned order. He submitted that the appellant has not paid up the service tax during the relevant period and therefore, the penalties imposed are legal and proper. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entire service tax along with interest on being pointed out by the Department much before the issuance of the Show Cause Notice. Taking all these facts into consideration, I am of the view that this is a fit case for invoking Section 80 of the Finance Act, 1994 since the appellants have established reasonable cause for the failure to discharge the service tax. 8. From the foregoing ..... X X X X Extracts X X X X X X X X Extracts X X X X
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