2019 (1) TMI 1235

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....t that the said activity would be a taxable service under the category of "Supply of Tangible Goods Service" leviable to service tax, which had not been disputed by the appellant. Accordingly a show cause notice dt. 18.09.2009 was issued inter alia, proposing demand of Rs. 5,43,00,911/- with interest thereon for the period 16.05.2008 to 11.11.2008 in respect of service tax liability for the ships provided on time charter basis. The SCN also proposed imposition of penalties under various provisions of law. In adjudication, vide order No.01/2011 dt. 28.02.2011 the adjudicating authority confirmed the proposal for payment of service with interest and also imposed equal penalty under Section 78 of the Finance Act, 1994. Hence this appeal. 2. W....

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....ed. (iv) It is pertinent to note that there is no mention in the Show Cause Notice with reference to the proviso to Section 73(1). In fact, Para No.7(i) makes it clear that the demand is made under Section 73(1). Therefore, it is not possible for the adjudicating authority to conclude that Section 73(4) is applicable and therefore the Appellant is not entitled under Section 73(3). Further, the Show Cause Notice has not considered the payment made by the Appellant before the issue of Show Cause Notice. 3. On the other hand, Ld. A.R Shri K. Veerabhadra Reddy opposes the appeal. Ld. A.R also says that only at the stage of Tribunal that the appellant made a plea for invocation of Section 80 of the Finance Act, 1994 whereas throughout the adju....

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....ndicate that appellant did not receive the service tax component from Poompuhar for a long time. It is certainly not the case that appellant merrily collected the service tax but had chosen not to discharge the liability to the exchequer. 5.2 It is also pertinent to note that once the matter was pointed out by audit, and the amount was received from Poompuhar, the appellant not only paid up the tax liability of Rs. 5,43,00,911/- for the period 16.05.2008 to 11.11.2008 but also tax liability for further period upto February 2009. 5.3 In the event, we consider that there is reasonable cause for appellant in their failure to discharge tax liability when it was due. In any case, the amount of Rs. 7 crores appropriated by the adjudicating auth....