TIDEWATER SHIPPING PRIVATE Vs. COMMISSIONER OF SERVICE TAX

JUDGEMENT

(1.) <FRM>JUDGEMENT_142_LAWS(CE)3_2008.htm</FRM> 1. In all the above cases pertaining to Service Tax, Revenue proceeded against the appellants on the ground that they have not paid the Service Tax, which is liable to be paid by them. Of course, in each case, the facts are slightly different. However, in all these cases as soon as the lapse of not paying the required Service Tax was pointed out, the appellants paid the entire amount of Service Tax along with interest even before the issue of Show Cause Notice. The details of the date of issue of Show Cause Notice, and the date of payment in respect of each appeal is given below in the Tabular column. <FRM>JUDGEMENT_142_LAWS(CE)3_12008.htm</FRM>

(2.) THE learned Advocates pointed out that there are number of case -laws which hold that when the duty and the interest are paid much before the issue of Show Cause Notice, there is no need for imposition of any penalty and this principle had been followed by this bench in many of the cases. A large number of cases have been cited by the learned Advocates.

(3.) ON the other hand, the learned SDR stated that in respect of each of the case, it cannot be said that the appellants were under bonafide belief for non -payment of Service Tax. There is actually suppression of facts in order to evade the tax. Therefore, the appellants are liable for penalty. Hence, the learned SDR requested the bench to uphold the impugned orders.