2019 (2) TMI 211 – CESTAT CHENNAI – TMI – Non-imposition of penalty – short payment of service tax – tax was paid before issuance of SCN – sub-section (3) of Section 73 of FA – Held that:- The respondent has discharged the entire service tax liability along with interest before issuance of the show cause notice – As per sub-section (3) of Section 73, as it stood during the relevant period, no penalty can be imposed when the demand of service tax along with interest stands paid before issuance of show cause notice – The respondents have also explained the reason for delay in paying the service tax.
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It is seen that the accountant engaged had left the firm as it was proved that he is unreliable and mischievous. The respondent had paid
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that the respondents have delayed in paying service tax, investigations were conducted. They had provided taxable service to Volkswagen and other customers during the year 2010 – 11 and they collected the service tax but not filed returns or paid the service tax. Show cause notice dated 21.6.2011 was issued proposing to demand service tax along with interest and for imposing penalties. After due process of law, the Commissioner of Central Excise confirmed the demand and interest and appropriated the amount already paid by the appellant but, however, waived the penalties. Aggrieved against non-imposition of penalties, the department has filed the present appeal. 2. On behalf of the department, ld. AR Shri K. Veerabhadra Reddy submitted that
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uance of the show cause notice. As per sub-section (3) of Section 73, as it stood during the relevant period, no penalty can be imposed when the demand of service tax along with interest stands paid before issuance of show cause notice. The respondents have also explained the reason for delay in paying the service tax. It is discussed in para 10 of the impugned order that the delay occurred due to the delay in receiving amounts from the clients and also because they were not able to ascertain the input credits in order to arrive at the exact service tax amount payable by them; that a single person was looking of the entire affairs and it is also created much hardship in accounting. It is seen that the accountant engaged had left the firm as
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