9911796707
TMI Blog2013 (12) TMI 265X X X X Extracts X X X X X X X X Extracts X X X X ..... that penalty under Section 78 also is not imposable - Decided in favour of assessee. - ST/530/2011 - Final ORDER NO. 57493/2013 - Dated:- 22-8-2013 - Mr. G. Raghuram and Mr. Sahab Singh, JJ. For the Appellant : Shri Mayank Garg, Advocate For the Respondent : Shri Govind Dixit B.B. Sharma, DR JUDGEMENT Per Sahab Singh : This appeal is filed by M/s Golcha Ingorganics Pvt. Ltd. (hereinafter referred to as Appellants) against the Order-in-Appeal No. 472(CB)ST/JPR-II/2010 dated 13.12.2010 passed by the Commissioner Central Excise, (Appeals) Jaipur-II. 2. Brief facts of the case are that appellants were receiving the services of Goods Transport Agency (GTA) for receiving of raw material and sending the finished goods and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al. Appellants have preferred this appeal against the impugned order. 3. Shri Mayank Garg Ld. Advocate appearing for the appellants submits that as recipient of service the appellants were not aware of the service tax liability as they thought that tax is payable by the service providers only. On being pointed out by the Department about their tax liability they have deposited the entire service tax liability along with interest on 13.10.2007. After the amount was deposited, the Show Cause Notice was issued to them and on adjudication penalty was imposed by the original authority and confirmed by the Commissioner (Appeal). He submits that since the appellants have paid the tax and interest before the issue of Show Cause Notice, no penalty ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce Act reads as under:- Notwithstanding anything contained in the provisions of section 76, Section 77 of Section 78 no penalty shall be imposable on the assessee for any failure referred to in the said provisions, if the assessee proves that there was reasonable cause for the said failure. We find that the original authority has accepted the reasonable cause shown by the appellants for failure for payment of service tax and the Revenue has not challenged the Order-In-Original in respect of dropping the penalty under Section 76 and 77 of the Finance Act. Therefore there is no reason not to apply the same reasonable cause for failure of payment of service tax in respect of penalty under Section 78 of the Finance Act. We accordingly hold t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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