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TMI Blog2015 (11) TMI 330X X X X Extracts X X X X X X X X Extracts X X X X ..... and Majra - appellants were on mistaken belief that M/s.Reliance was paying the eservice tax - Due tax along with interest paid before issuance of SCN - Held that:- Appellants have paid service tax alongwith interest prior to issuance of show cause notice. Further, the service tax was voluntarily paid by them and the same was informed to the department vide their letter dated 7.6.2011. The Depart ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ellant : Shri Sachin Chitnis, Advocate For the Respondent : Shri S.Nunthuk, AR ORDER Per Sulekha Beevi C.S. 1. The appellant is aggrieved by the imposition of penalty. 2. The appellants are engaged in the manufacture of Detergent Cakes/Powder, Scouring Powder/Bar and were procuring the raw material i.e. Linear Alkyl Benzene (LAB) from M/s.Reliance Industries Ltd., Gujarat to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts filed appeal before the Commissioner (Appeals) who vide impugned order partly allowed the appeal by reducing the penalty to 50%. Aggrieved the appellants are before the Tribunal. 3. The foremost argument advanced by the learned counsel for the appellants is that the appellants had voluntarily paid service tax on realizing their liability to pay service tax. It is only after that, the departm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ransportation of raw materials. After ascertaining that M/s.Reliance Industries has not paid service tax, the appellants on realizing their mistake voluntarily paid service tax and informed the department vide their letter dated 7.6.2011. It is seen from the records that after more than a year, after receipt of this letter explaining the situation of non payment, the department has issued show cau ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not been able to establish any suppression of facts with intention to evade payment of duty on the part of the appellant. In such situation, the imposition of penalty is not warranted. In CCE, Bangalore vs. Master Kleen-2012 (25) STR 439 (Kar.) it has been held that no show cause notice could be issued for imposition of penalty when service tax alongwith interest is paid before issuance of show c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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