9911796707
TMI Blog2016 (3) TMI 307X X X X Extracts X X X X X X X X Extracts X X X X ..... s. CCE, Chandigarh [2008 (7) TMI 350 - CESTAT NEW DELHI], Samtel Colour Ltd. vs. CCE, Jaipur [2007 (8) TMI 336 - CESTAT, NEW DELHI], Marudhamalai Murugan Industries (P) Ltd. vs. CCE, Salem [2009 (1) TMI 73 - CESTAT, CHENNAI], once the service tax and interest are paid, no penalty can be imposed. Invokation of extended period of limitation - Intention to evade payment of Service tax - Held that:- when the appellant can take credit and utilize it further for the payment of tax, naturally they would not get any benefit by not paying such a tax and attract penal provisions of the law, so, there can not be any intention to evade tax. Therefore, as the appellant peis not disputing the liability to tax and they have paid the service tax along ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vice tax payable against such payment will be of the supplier and that is why they did not pay the service tax on the advances made by the suppliers to the transporters. They also submitted that in February 2008 when the audit was going on, the factory of the appellant was closed due to financial crunch and subsequently, the appellant moved an application for waiver from payment of dues before BIFR authorities. Subsequently on 24.6.2008, the appellant received a letter from the Superintendent of Central Excise demanding the said payment and the appellant vide their letter dated 26.6.2008 intimated that they are unable to pay the same as they are facing acute financial problems. Subsequently the appellant received a show cause notice dated 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7.5.2009 along with interest. He further submitted that there was no intention to evade because the credit of the said service tax would have been available to them irrespective of the date of payment as cenvat credit as the appellant is manufacturer of finished excisable products and the entire exercise is revenue neutral and it is a settled principle of law that in case of such revenue neutral situation, there cannot be any intention to evade service tax and invoking the extended period is also wrong. He further submitted that vide Notification 1/2006-ST dated 1.3.2006, there was exemption of service tax in cases of 25% of the taxable value in case of GTA services and in this case they have paid service tax on full amount without any abat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n that once the service tax and interest are paid, no penalty can be imposed:- (i) Dineshchandra R. Agarwal Infracon Pvt. Ltd. vs. CCE, Ahmedabad reported in 2010 (18) STR 39; (ii) HP State Forest Corpn. Ltd. vs. CCE, Chandigarh reported in 2009 (14) STR 515; (iii) Samtel Colour Ltd. vs. CCE, Jaipur reported in 2008 (9) STR 197; (iv) Marudhamalai Murugan Industries (P) Ltd. vs. CCE, Salem reported in 2009 (15) STR 56. 7. Further I find that the Commissioner (Appeals) has not really discussed the issue and justified invoking the extended period. Even though it is true that revenue neutral situation would arise only after payment of service tax, yet it would be relevant to decide whether there was an intention to evade ..... X X X X Extracts X X X X X X X X Extracts X X X X
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