2015 (11) TMI 520

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.... discharge of service tax liability. Though the appellant discharged the service tax liability alongwith interest, penalty under section 76 of the Act was imposed which according to the appellant is illegal and unjustified. 3. Learned DR assailed the order of the adjudicating authority and submitted that as there was delay in discharging the tax liability, imposition of penalty is mandatory as per the provisions of section 76 which provides that the assessee has to pay penalty in addition to paying service tax alongwith interest. He further, submits that the assessee is a habitual offender, that records would reveal that the service tax has been paid with delay during different months, in the relevant period. 4. The counsel for appell....

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....of 22 days. The tax due on 5th March 2007 was paid on 16th March 2007 with delay of 11 days. There is intermittent delay in discharging the tax liability. However, it was paid with interest before the issue of show cause notice. 7. After hearing both sides and analyzing the records, I find that the arguments raised by the learned Counsel for the appellant find force. The appellant has discharged service tax liability alongwith interest prior to issue of show cause notice. 8. In Commissioner of Service Tax, Bangalore vs. Master Kleen-2012 (25) ELT STR 439 (Kar), the Hon'ble High Court has held as under:-  "2. The material on record discloses that the assessee on being pointed out by the authorities for not paying the serv....