2017 (1) TMI 169

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....n to markets. On gathering intelligence that the appellants are not paying service tax on freight charges paid by them, the Department requested appellants to furnish the details. After repeated requests the appellants vide letter dated 22.10.2011 furnished the details of freight charges paid by them for the period 2006-07 to 2010-11. After taking into consideration the abatement available to appellants as per the notifications, the taxable value was worked out to Rs. 1,11,91,404/- and the tax liability was arrived at Rs. 11,87,373/- for the period from April 2007 to March 2011. 3. A Show Cause Notice was issued to the appellants proposing to demand service tax amount of Rs. 11,87,373/- along with interest and also proposing to impose pena....

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....uance of the Show Cause Notice. That therefore the equal amount of penalty imposed under Section 78 is highly harsh. He submitted that out of the entire demand an amount of Rs. 9,00,103/- was paid for the period April, 2009 to March, 2011 in time and appellant had filed ST-3 Returns also. The service tax for the period prior to this, i.e., 4/2005 to 3/2009 to the tune of Rs. 3,18,940/- was paid belatedly. The same was however paid and interest of Rs. 1,01,498/- was also paid along with late fee of Rs. 6000/-. The appellants also paid penalty to the tune of Rs. 79,735/- which is 25% of the belated amount of Rs. 3,18,940/-. He argued that the imposition of equal amount of penalty of Rs. 11,83,543/- is highly harsh. 6. On behalf of the Depart....