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TMI Blog2019 (6) TMI 1023X X X X Extracts X X X X X X X X Extracts X X X X ..... or finding about the issue of revenue neutrality raised by the Appellants. It is settled law that where credit is available to an assesee itself it cannot be said that there is any intention to evade payment of duty. From the records, it is found that although the issue of revenue neutral was raised by the Appellant before both the authorities below, but none of the authority have either discussed or disputed or rejected the same - thus the transaction is revenue neutral. Also mens rea is not established for imposition of penalties since here also it is revenue neutral. Admittedly the Appellants have paid the service tax amount with interest much before the issuance of show cause notice. Penalties cannot be imposed - other deman ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble to pay service tax under reverse charge mechanism. On being pointed out by the audit, the Appellant immediately paid the service tax amounting to ₹ 4,20,869/- on 18/01/2014 and also paid the interest. Thereafter, after a long period i.e. on 20/01/2016 the department issued a show cause notice proposing recovery of service tax alongwith interest and penalty after invoking the extended period of limitation. The said show cause notice was adjudicated vide orderin-original dated 29/03/2017 wherein service tax payment of ₹ 4,20,869/- was confirmed alongwith interest. Penalties under Sections 77 78 of the Finance Act,1994 were also imposed. The amount of service tax and interest which has already been deposited by the Appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned Authorised Representative on behalf of Revenue reiterated the findings recorded in the impugned order and prayed for dismissal of Appeal filed by the Appellant. 4. It is no doubt true that the Appellant was liable to pay tax which they failed to pay. But on being pointed out the audit party, without waiting for any notice from the department, the Appellant immediately deposited the entire service tax amount along with interest much before the issuance of show cause notice. This shows that there was no intention to evade payment of duty. A perusal of the impugned order would show that there is no discussion or finding about the issue of revenue neutrality raised by the Appellants. It is settled law that where credit is avail ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed for imposition of penalties. Having considered the matter on this aspect on merits in favour of the appellant, we do not find it necessary to go into the alternate submission of the appellant. 6.1 In view of the above, as the duty stands paid and credit of duty paid is admissible, the impugned order is set aside to the extent of recovery of interest and imposition of penalties. 7. Appeal allowed in above terms. I do not find any reason to deviate from the aforesaid observation of the Tribunal. In the present case also, mens rea is not established for imposition of penalties since here also it is revenue neutral. Admittedly the Appellants have paid the service tax amount with interest much before th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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