TaxTMI 
TaxTMI 
2009 (3) TMI 192
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....rvices. The appellants have obtained Service Tax registration during February 2005, even though the services came under service tax net from 1-7-2003. They were rendering the services through execution of contracts awarded by M/s. Hindustan Petroleum Corporation Ltd., Visakhapatnam. These contracts were running contracts awarded before imposition of service tax and were renewed from time to time on the same terms and conditions. After due adjudication process, the Adjudicating Authority demanded and confirmed service tax along with interest and imposed penalties. 2.1 Aggrieved by the order which confirmed the demand of Service Tax, imposed penalties, the appellants preferred an appeal before the learned Commissioner (A). The learned Commis....
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....show cause notice. I find that the Hon'ble Tribunal in the case of Deepak Spinners Ltd. v. CCE, Indore reported in 2005 (179) E.L.T. 93 (Tribunal.-Del.) held as under: "Deposit of duty on being caught by department, not a voluntary payment of duty - keeping in view the conduct of respondents, penalty imposable, and interest chargeable." Further in the case of CCE, Kolkata-I v. Gurdian Leisure Planners Pvt. Ltd. Reported in 2007(211) E.L.T. 229 (Tri.-Kolkata) held as under : Penalty - Imposition of - Its purpose is to defeat recurrence of breach of law and discourage noncompliance of law by willful breach - Section 76 of Finance Act, 1994. Penalty - Imposition of - Difference between Service Tax law and Central Excise law - under the lat....
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....pellant did not get amount as Service Tax for the services rendered by them and as such, payment of Service Tax does not arise. It is further submitted that the appellants were under bona fide impression that being a SSI unit, availing exemption under Central Excise, their services also are exempted from payment of Service Tax. It is the submission that despite this, when the department raised the issue, the appellants promptly paid majority of the tax amount before the issue of show cause notice and the balance amount along with interest was paid during the proceedings before the lower authorities. It was also contended that the imposition of penalty is unwarranted as they have discharged the entire amount before issuance of show cause not....