TMI Blog2023 (3) TMI 889X X X X Extracts X X X X X X X X Extracts X X X X ..... matter. Accordingly, it is found that there is reasonable cause for not depositing the tax on month to month basis. The penalties under Section 77 and Section 78 of the Act are set aside - appeal allowed. - Service Tax Appeal No. 50354 of 2017 - FINAL ORDER No. 50346/2023 - Dated:- 13-3-2023 - SHRI ANIL CHOUDHARY, MEMBER (JUDICIAL) Shri J. M. Sharma, Consultant Ms. Pooja Agarwal, C.A. for the appellant Shri Mahesh Bhardwaj, Authorised Representative for the respondent ORDER Heard the parties. 2. The issue involved in this appeal is whether the penalty of Rs. 1,89,911/- have been rightly imposed under Section 78 of the Act. Further penalty was imposed Rs. 5000/- under Section 77. 3. The brief facts are t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t payment of Rs. 12,941/- and also short payment of Rs. 3,66,879/- mentioning that the appellant-assessee have agreed to the objection and have also deposited these amounts, with proposal to appropriate the same alongwith interest. The show cause notice also mentions that the appellant has informed the department about the payment, mentioning that the matter may be taken as concluded. Further mentioned that although the appellant-assessee was reminded by the Range superintendent by letter dated 19.02.2014, alongwith reminders during April 2015 to August 2015 to pay the prescribed penalty, but as the appellant did not respond neither intimated the payment particulars of the penalty amount @ 1% per month, it appeared that the facility of clos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ervice tax with respect to the six months period from April 2013 to October 2013, which was not paid on accrual basis. Thus, no case of suppression, fraud etc. is made out against the appellant. As the appellant had paid the service tax on being pointed out by audit alongwith interest, no show cause notice was required to be issued in the matter. Accordingly, she prays for setting aside the penalty imposed. 8. Learned AR for revenue relies on the impugned order. 9. Having considered the rival contentions, I find that there is no deliberate default in payment of tax liability by the appellant. The issue is wholly interpretational in nature. Admittedly, the appellant was paying taxes regularly but there is only technical or venial breac ..... X X X X Extracts X X X X X X X X Extracts X X X X
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