9911796707
TMI Blog2009 (3) TMI 192X X X X Extracts X X X X X X X X Extracts X X X X ..... vices. The appellants have obtained Service Tax registration during February 2005, even though the services came under service tax net from 1-7-2003. They were rendering the services through execution of contracts awarded by M/s. Hindustan Petroleum Corporation Ltd., Visakhapatnam. These contracts were running contracts awarded before imposition of service tax and were renewed from time to time on the same terms and conditions. After due adjudication process, the Adjudicating Authority demanded and confirmed service tax along with interest and imposed penalties. 2.1 Aggrieved by the order which confirmed the demand of Service Tax, imposed penalties, the appellants preferred an appeal before the learned Commissioner (A). The learned Commiss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... how cause notice. I find that the Hon'ble Tribunal in the case of Deepak Spinners Ltd. v. CCE, Indore reported in 2005 (179) E.L.T. 93 (Tribunal.-Del.) held as under: "Deposit of duty on being caught by department, not a voluntary payment of duty - keeping in view the conduct of respondents, penalty imposable, and interest chargeable." Further in the case of CCE, Kolkata-I v. Gurdian Leisure Planners Pvt. Ltd. Reported in 2007(211) E.L.T. 229 (Tri.-Kolkata) held as under : Penalty - Imposition of - Its purpose is to defeat recurrence of breach of law and discourage noncompliance of law by willful breach - Section 76 of Finance Act, 1994. Penalty - Imposition of - Difference between Service Tax law and Central Excise law - under the latt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ellant did not get amount as Service Tax for the services rendered by them and as such, payment of Service Tax does not arise. It is further submitted that the appellants were under bona fide impression that being a SSI unit, availing exemption under Central Excise, their services also are exempted from payment of Service Tax. It is the submission that despite this, when the department raised the issue, the appellants promptly paid majority of the tax amount before the issue of show cause notice and the balance amount along with interest was paid during the proceedings before the lower authorities. It was also contended that the imposition of penalty is unwarranted as they have discharged the entire amount before issuance of show cause noti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... before us is that there is no need for imposition of penalties as they have paid the entire amount of Service Tax and the interest, thereof, during the pendency of the issue before the Adjudicating Authorities. 5.2 We are of the considered opinion that the appellants did not respond to the various letters written by the authorities as regards the past transactions. This is not disputed by the appellants. We find that there is a categorical finding by the Adjudicating Authority that it took seven months for the appellant to declare their past liabilities. If it is the contention of the appellant that they were under bona fide impression, they should have declared their past transactions i.e. prior to obtaining the service tax registration ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
