2017 (12) TMI 716

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....rch 2011. The respondent has collected service tax and did not pay service tax in the Government treasury. During the course of audit, it was pointed out and respondent paid service tax immediately. Thereafter, a show-cause notice was issued on 25.5.20112 by invoking extended period of limitation to demand service tax along with interest and appropriation thereof and to impose various penalties under the Finance Act, 1994. The matter was adjudicated. The adjudicating authority confirmed demand of service tax and appropriated the same and also imposed various penalties against the respondent. On appeal filed by the appellant before the learned Commissioner (A), the learned Commissioner (A) held that extended period of limitation is not invok....

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....excess amount paid has already been refunded to them. In that circumstance, it is prayed that although demand may be confirmed against the respondent but by invoking provisions of Section 73(3), no penalty is imposable on the respondent. 5. Heard the parties and considered their submissions. 6. On a careful consideration of the submissions, I find that in this case audit took place in the month February and March 20011 and immediately on pointing out by the audit, the respondent paid entire amount of service tax along with interest and even excess amount of service tax was paid by the respondent. Further, it has been explained by the respondent that why they could not pay service tax in time as they were regularly paying their service....

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.... extended period is invoked in the SCN (h) they had in fact paid the excess ST amounting to Rs. 4,29,538/- for the financial year 2009-10 (i) they had regularly paid the ST till the financial year 2008-09 (j) they had produced the relevant ledger extract of MRPL and sample copies of the invoices(k) they had recorded all the transactions of MRPL in their books of account and disclosed in the audited Balance Sheet for the year ended 31.03.2010 and 31.03.2011 - all being material and relevant grounds and basis, and, as such, they were under genuine, reasonable and bonafide belief that no ST is leviable on such service. I find that the Lower Authority's finding recorded in this regard leading to confirmation of the applicability of the proviso ....