2018 (2) TMI 933

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..... how cause notice under the Act. Sub-Sec.(3) of Sec. 73 of the Finance Act, 1994 categorically states, after the payment of service tax and interest is made and the said information is furnished to the authorities, then the authorities shall not serve any notice under Sub-Sec.(1) in respect of the amount so paid. Keeping in view the conduct of the appellant, it is a fit case for invoking provisions of Section 80 of the Finance Act, 1994 for waiving the penalty which is imposed - appeal allowed - decided in favor of appellant.
SHRI S.S GARG, JUDICIAL MEMBER AND SHRI V. PADMANABHAN, TECHNICAL MEMBER Ms. Apporva, Advocate, For the Appellant Shri Parashivamurthy, Dy. Commissioner (AR), For the Respondent Per : V. PADMANABHAN The present .....

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..... e penalty which has been imposed on them for the reason that there was no wilfull intention to wrongly avail the CENVAT credit. Since the same has been reversed even before the issuance of the show-cause notice, it is argued that the penalty is not imposable. They also placed reliance on the following case laws: i. CST, LTU Vs. Adecco flexione Workforce Solutions Ltd. [2012(26) STR 3 (Kar.)] ii. Central Warehousing Corporation Vs. CST [2013-TIOL-755-CESTAT-AHM] 4. The learned AR justified the penalty imposed on the appellant. He submitted that the reversal of CENVAT credit was done by the appellant only after the same was detected and pointed out by the audit. But for the detection of the same, by the Departmental audit officers, the w .....

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..... e law seem to think otherwise and thus they are wasting that valuable time in proceeding against persons who are paying service tax with interest promptly. They are paid salary to act in accordance with law and to initiate proceedings against defaulters who have not paid service tax and interest in spite of service of notice calling upon them to make payment and certainly not to harass and initiate proceedings against persons who are paying tax with interest for delayed payment. It is high time, the authorities will change their attitude towards these tax payers, understanding the object with which this enactment is passed and also keep in mind the express provision as contained in sub-sec. (3) of Sec. 73. The Parliament has expressly state .....

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