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TMI Blog2008 (2) TMI 69X X X X Extracts X X X X X X X X Extracts X X X X ..... [Order] -1. After examining the records and hearing both sides, I am of the considered view that the appeal itself requires to be finally disposed of at this stage. Accordingly, after dispensing with pre-deposit, I take up the appeal. 2. The appellants are engaged in the manufacture of textile products. During the period from 1-1-2005 to 30-9-2005, they had paid service tax on the service of Goods Transport Agency (GTA) received in relation to transport of goods by road, by availing Cenvat credit on other input services. Obviously, they treated GTA service as output service, a fact evident from the service tax returns filed from time to time for the aforesaid period. The department objected to such availment of input service tax credi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r day starting with first day after the due date till the date of actual payment, not exceeding Rs. 1,27,702/- (equivalent to the sum of the Cenvat credit reversed by the assessee and the service tax paid in cash by them), under Section 76 of the Finance Act, 1994. The present appeal of the assessee is directed against this decision of the Commissioner. 3. After giving careful consideration to the submissions of both sides, I note that the case of the appellants is that they are entitled to the benefit of Section 80 of the Finance Act, 1994, which provisions reads as under:- Notwithstanding anything contained in the provisions of Section 76, 77 or 78 no penalty shall be imposable on the assessee for any failure referred to in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 's arguments. The show-cause notice in this case clearly stated the legal position that the service tax on GTA service being an input service had to be paid in cash. After receipt of the show-cause notice, therefore, the assessee could not have pleaded ignorance of law. Nevertheless, they chose to contest the show-cause notice. Later on, however, they realised their mistake and paid up service tax on the GTA service in cash after reversing the input service tax credit availed. This was done at the hearing stage of the case before the adjudicating authority. Had this been done promptly upon receipt of the show-cause notice, it would perhaps have constituted reasonable cause for purposes of Section 80 ibid . As already noted, what the as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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