TMI Blog2019 (6) TMI 957X X X X Extracts X X X X X X X X Extracts X X X X ..... sue of SCN, the imposition of penalty in this case is unwarranted. Appeal allowed - decided in favor of appellant. - Service Tax Appeal No. 77735/2018 - FO/A/75609/2019 - Dated:- 4-6-2019 - SHRI P.K. CHOUDHARY, JUDICIAL MEMBER Appearance: Sri Rajeev Agarwal, C.A. for the Appellant (s) Shri S.S. Chattopadhyay, Supdt. (A.R.) for the Respondent (s) PER SHRI P.K. CHOUDHARY The facts of the case in brief are that the appellant namely, M/s. Howden Solyvent (India) Pvt. Ltd. [formerly known as Solyvent Flakt (india) Ltd and Flakt (India) Ltd], have received taxable services from the group companies outside India, which are liable to service tax under the category of Management Consult ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Kr Agarwal, CA, appeared for the appellant and Shri S. S. Chattopadhyay, (Supdt) A R appeared for the Department. The Ld. CA submitted that the only issue arises for consideration is whether penalty under section 78 of the Act is imposable where differential service tax and applicable interest has been paid before issuance of the Show Cause Notice. He submitted that since service tax amount and interest was immediately deposited on being pointed out during the Audit, the SCN could not legally be issued in terms of Section 73(3) of the Act. He relied on various decisions as below: Bio-Med. Health Care Products (P) Ltd. v. CCE, Delhi [2015 (37) S.T.R. 381 (Tri-Del.)] Gujarat Ambuja Exports Ltd. vs. CCE, Ahmedabad [2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nalty while observing the fact that the demanded service tax was paid before the issuance of Show Cause notice. The aforesaid appeal decisions were duly placed before the Ld. Commissioner (Appeals), as also mentioned in para 7 page no. 4 of the impugned Order in Appeal, however, no finding has been given by the Ld. Commissioner (Appeals). 5. The Ld. D R supported the findings of the lower authorities and requested to upheld the penalty amount. 6. Heard both sides and perused the appeal records. 7. I find that rate of service tax was 12% during the year 2008 when the taxable services were rendered which got subsequently reduced to 10% when the foreign remittance was actually made. Since the appellant was liable to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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