2013 (10) TMI 481 - AT - Service Tax

Waiver of penalty - Relief u/s 80 of Finance Act Service Tax on GTA Service CENVAT credit - Held that - Payment of service tax on GTA service in cash and taking its cenvat credit by an assessee, eligible to take cenvat credit, was a Revenue neutral exercise - the entire amount of duty along with interest had been paid by the appellant before issue of show cause notice under Section 73 (3) of the Finance Act, 1994, there was no need even to issue a show cause notice - This was a fit case where penalty under Section 80 of the Finance Act, 1994 was not required to be imposed - Accordingly, the appeal filed by the appellant for non-imposition of penalty under Section 76 of the Finance Act, 1994 was allowed Decided in favour of Assessee.

Summary

The appellant filed a miscellaneous application seeking relief under Section 80 of the Finance Act, 1994 regarding a penalty imposed under Section 76 for service tax on GTA services. The application was allowed, and it was observed that since the appellant paid the tax and interest before any show cause notice was issued, no penalty was required. The appeal for non-imposition of penalty under Section 76 was allowed.