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TMI Blog2019 (1) TMI 252X X X X Extracts X X X X X X X X Extracts X X X X ..... . This Tribunal in the case of CCE, Panchkula Vs. Krishna Cylinder [2015 (1) TMI 1197 - CESTAT NEW DELHI] has held that in accordance of the provisions of Section 73(3) of the Finance Act, the Show Cause Notice was not required to be issued when service tax along with interest has been paid by the assessee before the issuance of the Show Cause Notice. Further, in the Show Cause Notice there were no specific allegations of non-payment due to fraud, collusion, wilful mis-statement or suppression of material facts, it was held that no penalty can be imposed on such assessee - The facts in the present case are identical. Penalty cannot be imposed - appeal allowed - decided in favor of appellant. - Service Tax Appeal No. ST/52842/2018 [ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... No. 364 dated 31.05.2018 though has set aside, the proposed recovery however has imposed penalty of ₹ 2 lakhs upon the appellant. Resultantly, the impugned Appeal. 2. I have heard Shri Shailender Vijay, Ld. Advocate for the appellant. It is submitted that once the Commissioner(Appeals) has appreciated that the appellant has reversed the availed cenvat credit and deposited the same alongwith interest well before the issue of impugned Show Cause Notice, there arises no need for imposition of penalty. The penalty could have been imposed under Section 76, 77 and 78 of the Finance Act which are not sustainable in view of Section 85 of the Finance Act. Order under challenge is therefore prayed to be set aside; Appeal is prayed to be all ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o options. Resultantly, a recovery of ₹ 42,65,412/- as an amount equivalent to 6% of the value of trading activity (exempted services) during the impugned period was proposed and initially confirmed. But the simultaneous admitted fact remains is that the demand as was pointed out during the audit was paid alongwith the interest by the appellant, i.e. the cenvat credit availed on its trading activity (the exempted) was reversed alongwith the interest before issuance of the impugned Show Cause Notice. In accordance of Rule 6(3)(b) of CCR. In view of this admitted fact, I am of the opinion that no penalty can be imposed under Section 11AC of the Excise Act and under Rule 15 of the CCR Rules. I draw my support from the decision of Hon ble ..... X X X X Extracts X X X X X X X X Extracts X X X X
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