9911796707
TMI Blog2018 (11) TMI 1927X X X X Extracts X X X X X X X X Extracts X X X X ..... The issue involved in all the appeals bearing nos. ST-283/2009, ST-284/2009 and ST-287/2009 filed by the assessee, is identical and hence, taken up together for disposal by this common order. Appeals filed by the Revenue bearing nos. ST-276/2009, ST-277/2009, ST- 278/2009 against which Cross Objections bearing nos. 63/2010 and 64/2010 have been filed by the assessee, are also being disposed of by this order. 2. Briefly stated, the facts of the case are that the assessees herein are engaged in manufacture of coke which attracts central excise duty. In the course of said manufacture, they availed services of transportation of goods by road ('GTA service') on which service tax was made leviable under the provisions of the Finance Act, 1994, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mand. However, he confirmed the imposition of penalty equal to service tax amount under Section 78 of the Act. He also imposed penalty under Section 77 of the Act on the service recipient i.e. the assessee manufacturer. In so far as demand of service tax and penalty proposed in the Show Cause Notice to the concerned goods transport agencies, he dropped the entire proceedings. 4. Sri N. K. Chowdhury, Advocate, appeared on behalf of the assessee and Sri. A. K. Roy, appeared on behalf of the Department. 5. The Ld. Advocate for the assessee submitted that the subject matter of service tax on GTA service was completely new as it was introduced in the January 2005 which is the period in dispute herein. Entire payment of service tax has been mad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Pushpadeep Enterprises 2012 (279) ELT 503 (Kar.) wherein the imposition of penalty has been set aside when duty amount was deposited before the issue of Show Cause Notice. He also stated that since the levy was new, coupled with the fact that the large portion of the tax amount stood deposited through the transporters, there could not be any reason of wilful suppression with intent to evade payment of tax. On this count, he further added that they are entitled to complete relief from imposition of penalty by virtue of Section 80 of the Act, inasmuch as there was a 'reasonable cause' for non payment of service tax during the period in dispute under the aforesaid circumstances. 6. Ld. Departmental Representative (DR) supports the findings ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e case of the Revenue that they are seeking double payment of tax which stood deposited by the transport agencies as reimbursed and borne by the assessee manufacturers receiving transport service which fact has also been appreciated by the Ld. Commissioner in the impugned Original Order. We agree with the submissions made by the assessee that when service tax amount has been deposited before the Show Cause Notice, no penalty should be imposed in view of the law as laid down by the Hon'ble Karnataka High Court in case of Pushpadeep Enterprises (Supra) relied upon by the assessee, which is squarely applicable to the facts of the present case. We also find force in the argument of the assessee that in terms of the provisions of Section 80 of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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