Goods and Services Tax

M/s. Binny Ltd. Versus Commissioner of GST & Central Excise Chennai

2019 (1) TMI 568 – CESTAT CHENNAI – TMI – Penalty – Short payment of service tax – entire service tax liability alongwith interest was paid up before issuance of show cause notice – Held that:- The appellant has established that they had paid up the entire service tax along with interest even though belatedly – also, appellants have established reasonable cause for not paying the service tax – this is a fit case to invoke Section 80 of the Finance Act, 1994. – penalty cannot be imposed – appeal allowed. – Appeal No. ST/41095/2017 – Final Order No. 40051/2019 – Dated:- 10-1-2019 – Ms. Sulekha Beevi C.S., Member (Judicial) Ms. Parimala Devi, Advocate for the Appellant Shri L. Nandakumar, AC (AR) for the Respondent ORDER Brief facts are that

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d argued the matter. She submitted that there was a delay in paying service tax and this was due to financial hardships faced by the appellant during the relevant period. The entire service tax liability was paid up before issuance of show cause notice. In fact the tax liability for the period 2009 – 10 was paid up immediately on being pointed out by the audit. Subsequently, before issue of show cause notice, the tax liability for the year 2010 – 11 was also paid. Interest was also paid except for an amount of ₹ 1,02,051/- which was to be quantified. The same has also been paid up before the passing of the adjudication order. She submitted that the delay in payment will not attract the ingredients of section 78 to impose penalty. Sinc

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the tax liability along with interest is paid up before issuance of the show cause notice. That the appellant having defaulted in paying service tax, the penalties imposed are legal and proper. 4. Heard both sides. 5. The ld. counsel for the appellant has submitted that they are confining their contest in the present appeal only on the penalties imposed. The appellants have paid up the entire tax liability along with interest. The amount of ₹ 34,24,678/- has been determined and confirmed by the authorities below. The adjudicating authority has imposed equal penalty under section 78. The appellant has established that they had paid up the entire service tax along with interest even though belatedly. It is submitted that the delay in p

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