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Issues:
1. Imposition of penalty for non-payment of Service Tax. 2. Applicability of penalty under the Extra Ordinary Tax Payer Friendly Scheme. Analysis: 1. The Assistant Commissioner confirmed the Service Tax amount against the appellants for a specific period, which was already paid by them. However, no penalty was imposed initially. Subsequently, a show cause notice was issued for penalty imposition, leading to an appeal. The Commissioner (Appeals) enhanced the penalty to the amount of Service Tax. The main contention was the imposition of penalty. The Tribunal referred to a previous case and ruled that if the Service tax provider has registered and paid the tax along with interest before a certain date, no penalty is applicable. Since the appellants had paid the tax and registered before the specified date, the penalty imposition was unjustified. Consequently, the impugned order was set aside, the original order was restored, and the appeal was allowed in favor of the appellants. 2. The Tribunal's decision was based on the interpretation of the Extra Ordinary Tax Payer Friendly Scheme. The ruling clarified that under this scheme, if the taxpayer registers and pays the Service Tax along with interest before a particular date, no penalty is levied. The appellants had fulfilled these conditions, leading to the conclusion that the penalty enhancement was unwarranted. The judgment provided relief to the appellants by overturning the penalty imposition and reinstating the original order. The decision highlighted the importance of compliance with registration and timely payment to avoid penalties under the scheme. This detailed analysis of the judgment emphasizes the issues of penalty imposition for non-payment of Service Tax and the application of the Extra Ordinary Tax Payer Friendly Scheme, providing a comprehensive understanding of the legal reasoning and outcome of the case.
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