2012 (10) TMI 373

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..... llants are in appeal against the impugned order for invoking various penalties under the Finance Act, 1994. 2. The appellants are manufacturers of excisable goods. During the course of manufacturing activity they availed inward transportation services and paid service tax on inward transportation. The said service tax has been availed by them as credit. During the course of audit it was found tha .....

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..... credit. In that situation, provisions of Section 73(3) of the Finance Act provides that no penalty is imposable under bonafide belief and Section 80 also provide that if assessee is able to prove that it was a bonafide mistake, in that situation also penalty is not imposable. Therefore, the same being a revenue neutral situation and further on pointing out by the Department they have paid the serv .....

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..... ving service tax when in the Finance Act there are provisions of Section 73(3) and 80 where the adjudicating authority has the power to waive the penalty if the assessee is able to prove his bonafides. In this case it is true that the appellant has short-paid the service tax on inward transportation but on pointing out by the Department, the appellants immediately paid the service tax which was av .....

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