9911796707
TMI Blog2024 (12) TMI 742X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 73(3) of Finance Act, 1994, it is clear that if the assessee pays the tax liability along with interest before issuance of show cause notice, the entire case stand closed and no show cause notice should be issued. As discussed, since, the appellant did not have mala fide intention, their case is not hit by section 73 (4) also. Therefore, considering the overall facts and circumstances of the case, the appellant has been able to show the reasonable cause for nonpayment of service tax. Therefore, penalty Imposed under Section 78 can be set aside, invoking section 80 as well as invoking Section 73(3) of the Finance Act. Penalty set aside - appeal allowed. - HON BLE MR. RAMESH NAIR , MEMBER ( JUDICIAL ) Shri Vikas Mehta , Consultant appea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e appellant only contesting the penalty imposed under Section 78. 2. Shri Vikas Mehta, Learned Consultant appearing on behalf of the appellant submits that the non-payment of service tax was on account of financial difficulty and not on account of any mala fide in as much as the same was not only duly accounted in the final tax report, the liability was also discharged and service tax returns were also filed before the issuance of show cause notice. On this basis he argued that a lenient view may be taken in penalty under Section 78 and the same may be set aside. 2.1 He further submits that as regard the invoice dated 05.06.2013 issued to M/s Kalpataru Power Transmission Ltd for an amount of Rs. 9,84,270 +VAT @ 4% (Rs. 39370.80) + additiona ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aid provisions, if the assessee proves that there was reasonable cause for the said failure. 3[(2) Notwithstanding anything contained in the provisions of section 76 or section 77 or section 78, no penalty shall be imposable for failure to pay service tax payable, as on the 6th day of March, 2012, on the taxable service referred to in sub-clause (zzzz) of clause (105) of section 65, subject to the condition that the amount of service tax along with interest is paid in full within a period of six months from the date on which the Finance Bill, 2012 receives the assent of the President.] From the plain reading of the above Section, the penalty under Section 78 can be set aside when a sufficient cost for non-payment of service tax is shown by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection, and the period of 17[ thirty months ] referred to in sub-section (1) shall be counted from the date of receipt of such information of payment. Explanation 1: For the removal of doubts, it is hereby declared that the interest under section 75 shall be payable on the amount paid by the person under this sub-section and also on the amount of short payment of service tax or erroneously refunded service tax, if any, as may be determined by the 8[Central Excise Officer], but for this sub-section. 9[Explanation 2: For the removal of doubts, it is hereby declared 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 there ..... X X X X Extracts X X X X X X X X Extracts X X X X
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