9911796707
TMI Blog2022 (11) TMI 500X X X X Extracts X X X X X X X X Extracts X X X X ..... nt Shri Mahesh Bhardwaj, Authorised Representative for the respondent ORDER The appellant is a Government of Rajasthan Undertaking registered with the Department and they are engaged in providing various IT services. The appellant also receives various input services, on some of which, they are liable to pay service tax under Reverse Charge Mechanism. Pursuant to audit of the records, it appear ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntimation to the Revenue. However, the appellant have not paid interest applicable under Section 75. 2. Show cause notice dated 3.2.2020 was issued with proposal to demand service tax of Rs.46,96,327/- with proposal to appropriate the matching amount already deposited with proposal to demand interest and penalty under Section 78. In reply to show cause notice, the appellant submitted reply on 26. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of the appellant in disclosing their affairs to the Department and further observing that as they did not pay the interest under Section 75, show cause notice was rightly issued. Accordingly, upheld the penalty under Section 78. 3. Assailing the impugned order, the ld. Counsel for the appellant urges that under Section 73(3), it is provided that, "where service tax is not paid or short paid, an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Excise Officer, but for this sub-section. Further, Explanation (2) provides that "no penalty under any of the provisions of this Act or the Rules made thereunder shall be imposed in respect of payment of service tax under this sub-section and interest thereon." 4. In view of the provisions, ld. Counsel states that no penalty was imposable upon them under Section 78. Further, he urges that even o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er find that the Revenue have not calculated and pointed out the interest payable by the appellant. Further, such amount of interest has been immediately deposited upon receipt of the show cause notice before the adjudication order. 7. In this view of the matter, I hold that the penalty under Section 78 is not imposable. Accordingly, the impugned order is set aside and the appeal is allowed. Pena ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
