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TMI Blog2015 (10) TMI 2159X X X X Extracts X X X X X X X X Extracts X X X X ..... ision made in the case of Essar Steel Ltd. [2008 (11) TMI 105 - CESTAT, AHMEDABAD] followed – Decided in favour of Appellant. - APPEAL No.ST/682/11-Mum - - - Dated:- 16-9-2015 - Mr. M.V. Ravindran, Member (Judicial) And Mr. C.J. Mathew, Member (Technical) For the Petitioner : Ms. Padmavati Patil, Advocate For the Respondent : Shri D. Nagvenkar, Additional Commissioner (AR) ORDER Per: M.V. Ravindran This appeal is directed against Order-in-Original No. PI/COMMR/ST/27/2011 dated 18-10-2011. 2. Heard both sides and perused the records. 3. The issue involved in this case is regarding the service tax liability which has not been discharged by the appellant in respect of services received by them from their assoc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ority and submits that penalties need to be imposed as a deterrent. 6. On consideration of submissions made by both sides we find that the appellant has discharged the service tax liability and interest thereof during the proceedings before the lower authorities and such service tax liability has arisen of the appellant under reverse charge mechanism as provided under section 66A of the Finance Act, 1994. We find strong force in the contention raised by the learned counsel as to there was no intention to not to discharged the service tax liability, in as much that the services which was received by the appellant from their associates was utilized for manufacturing of final products on which the central excise duty is discharged. The appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry is located in Hazira, Surat and transaction relating to ECB was handled only by the headquarters of the company in Bombay and because of lack of coordination between the two offices, the omission to pay service tax occurred. He also submitted that the levy was also a new levy. Further, he submitted that there is no reason for them not to pay the service tax since as soon as they pay the service tax they were entitled to Cenvat credit and the company is paying more than ₹ 1,000 crores as Central Excise duty. Entire exercise was Revenue neutral and he also submitted that they have already taken credit of the service tax paid them in this case which also goes to show that there was no intention to evade payment of tax. Further, he dre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er, the appellants are entitled to benefit of Section 80 of Finance Act, 1994, as regards penalty under other Sections of Finance Act, 1994. We agree with the appellant that this is a case where show cause notice need not have been issued as provided under Section 73, but since the notice has already been issued, what is required is examination of issue. 4. In view of the above discussions, the duty and interest already paid by the appellant are confirmed and penalties imposed on them are set aside. Both the appeal and stay petition are disposed of. We find that the ratio of the above judgment of the Tribunal squarely covers the issue and the forceful submissions made by the counsel for setting aside penalties, merits acceptance. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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