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TMI Blog2020 (7) TMI 587X X X X Extracts X X X X X X X X Extracts X X X X ..... rest and also proposed to impose penalties under Sections 76, 77(1)(a) and Section 78 of the Finance Act, 1994 and penalty/fine under Section 70 read with Rule 7 of the Service Tax Rules, 1994. The show-cause notice also proposed to appropriate service tax of Rs. 93,45,509/- and interest of Rs. 24,20,408/- paid by the appellant assessee. The adjudicating authority passed the following order:- (i) I hold that the services of excavation of iron ore and shifting and leveling in the mining area provided by the noticee M/s. KMMI Steel Pvt. Ltd., Bellary to their client M/s. Trident Minerals, Hospet during the period from November 2007 to February 2009 to be a taxable service under the category of "Mining of Mineral" services classified in term ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red and Fifty Four only) paid by the noticee vide GAR-7 Challan No.04548 dated 04.12.2010 and adjustment of the same against the demand of Rs. 93,45,509/- confirmed at Sl. No.(iii) above; (vi) I order appropriation of Rs. 24,20,408/- (Rupees Twenty Four Lakhs Twenty Thousand Four Hundred and Eight only) paid by the noticee vide GAR-7 Challan No.0519/30.12.2010 and adjustment of the same against the demand of Rs. 24,20,408/- confirmed at Sl. No.(iv) above; (vii) I impose a penalty of Rs. 93,45,509/- (Rupees Ninety Three Lakhs Forty Five Thousand Five Hundred and Nine only) under the provisions of Section 78 of the Finance Act, 1994 for evasion of service tax owing to willful misstatement and suppression of facts of providing taxable serv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cause notice, there was no occasion to issue the show-cause notice alleging suppression of facts or contravention of the statutory provisions with intention to evade payment of service tax. It is his submission that the appellant assessee have paid the service tax of Rs. 93,45,509/- vide GAR7 challans Nos. 04526 and 0458 both dated 04/12/2010 and interest of Rs. 24,20,408/- vide challan No.0519 dt. 30/12/2010 immediately on being pointed out by the Department. It is also his submission that they were under the bona fide belief that the activity of excavation, shifting and leveling in the mining area was not a taxable service under mining of minerals which was taxable w.e.f. 01/06/2007. The learned Advocate further submits that had the appel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llant is squarely covered by Section 73(3) of the Finance Act, 1994 since the appellant assessee after making payment of service tax and the applicable interest before issuance of the show-cause notice, intimated the authorities for not issuing the show-cause notice. Once the payment of service tax and interest is made by the appellant assessee and the intimation is furnished to the authorities, then the authorities should not serve any notice under sub-section (3) of Section 73 in respect of amounts already paid. It is our considered view that there was no case to initiate proceedings for imposition of penalties under various sections of the Act. Our view is fortified by the decisions of the Hon'ble High Courts in the case of (i) CCE&ST, L ..... X X X X Extracts X X X X X X X X Extracts X X X X
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