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TMI Blog2012 (10) TMI 490X X X X Extracts X X X X X X X X Extracts X X X X ..... t if service tax with interest is paid before issue of show cause notice, no further proceedings should be initiated – penalty set aside - ST/265/2011 - A/1518/2011-WZB/AHD/2011 - Dated:- 8-8-2011 - Shri B.S.V. Murthy, J. REPRESENTED BY : Shri Vipul Khandhar, C.A., for the Appellant. Shri R.S. Srova, JDR, for the Respondent. [Order]. Appellant is engaged in providing taxable service covered under the category of transport of goods by road. Appellant had not paid the service tax for the period from 1-4-2005 onwards and on an investigation taken up by the Revenue in March 2006, the appellant paid the full amount of service tax with interest before issue of show cause notice. There is no dispute as regards the liability of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s deliberate and therefore imposition of penalty is justified. Since the matter was heard in substantial detail and I find that appeal itself can be decided at this stage itself. With the consent of both sides appeal itself is taken up for final disposal after waiving pre-deposit. 4. I have considered the submissions made by both the sides. In the circular issued by the Board on 17-12-2004, in para 5.6 it was observed in case of omission in payment of service tax or a procedural lapse by persons liable to pay service tax on the goods transport by road, committed before 31-12-2005, the consequences should be limited to recovery of tax with interest payable thereon. No penalty should be imposed on such defaulters unless the default is on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Accountant are logical. In the absence of any finding by both the lower authorities that service tax had been collected from all the customers, it cannot be said that there was deliberate intention to collect service tax and not to pay the same to the government. The fact that appellant had paid service tax for the period of three months would not in my opinion go against them rather should be helding their favour. This fact coupled with the fact that payment was made as soon as investigation was taken up, would show that this was a fit case for invocation of provisions of Section 73(3) of Finance Act, 1994 which provides that if service tax with interest is paid before issue of show cause notice, no further proceedings should be initiated ..... X X X X Extracts X X X X X X X X Extracts X X X X
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