Order Date – 28 February 2023

Parties: M/s Jagati Cokes Private Limited Vs Commissioner of Service Tax, Kolkata.

Facts –

• The Appellant M/s Jagati Cokes Private Limited, is a manufacturer of low ash metallurgical coke and coke breeze. For the activities, the assessee have taken services from Goods Transport Services and did not pay service tax initially during April, 2005 to September, 2006.
• The levy of service tax came into effect of Goods Transport Services from 01.01.2005 under reverse charge mechanism. As it was new entry, the appellant did not pay service tax, but the transporters have paid service tax.
• After adjudication, the amount paid by transport agency on account of Goods Transport Services, was appropriated, but penalties under Sections 77 and 78 of the Finance Act, 1994, were confirmed. Penalty under Section 76 was dropped.
• Hence the appeal is filed.

Issue –

• Whether the assessee is liable for the penalty?

Order –

• The Tribunal observed that there is no dispute that the Service tax has been paid by the service provider, although the same was paid by the assesse under reverse charge mechanism and the same has been paid and appropriated.
• Further, in the case of M/s Kamrup Coke Industries & SKJ Coke Industries Vs. Commissioner of Service Tax, Kolkata, held that the assessee is entitled for benefit of Section 80 of the Finance Act, 1994 as the amount of service tax has already been paid.
• The appellant is entitled for immunity from imposing penalty and therefore the tribunal set aside the order imposing penalty under Sections 77 & 78 of the Finance Act, 1994 on the assessee and the order dropping the penalty under Section 76 of the Finance Act, 1994, is upheld.
• Hence,the appeal filed by the assesse is allowed.