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TMI Blog2015 (5) TMI 211X X X X Extracts X X X X X X X X Extracts X X X X ..... mechanism. After that they have paid the service tax in time, same was available to them as Cenvat credit. By not paying the service tax in time, appellant has already suffered interest and have not taken credit of the service tax paid. Therefore it is a situation of revenue neutrality. Penalty under section 76 is dropped. However, I consider that imposition of penalty under section 77 shows ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ngaged in the activity of manufacturing bulk drugs and obtaining registration under the category of goods transport agency service. During this period appellants have took membership of PDA located outside. If that activity, the appellants was required to pay service tax under reverse charge mechanism. A the appellant failed to pay service tax under reverse charge mechanism therefore proceedings w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt could not pay service tax in time under reverse charge mechanism. If at all, they have paid service tax in time, same was available to them as Cenvat credit. Therefore, it is a situation of revenue neutrality but the appellant is not contesting the service tax liability. In this situation, penalty under section 76 and section 77 are not imposable. He further submits that penalty under section 7 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... them as Cenvat credit. By not paying the service tax in time, appellant has already suffered interest and have not taken credit of the service tax paid. Therefore it is a situation of revenue neutrality. Penalty under section 76 is dropped. However, I consider that imposition of penalty under section 77 shows the non application of mind by the authorities below. As under section 77 penalty cannot ..... X X X X Extracts X X X X X X X X Extracts X X X X
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