𝗖𝗘𝗦𝗧𝗔𝗧 𝗞𝗼𝗹𝗸𝗮𝘁𝗮 𝗥𝘂𝗹𝗶𝗻𝗴 𝗼𝗻 𝗣𝗲𝗻𝗮𝗹𝘁𝘆 𝗳𝗼𝗿 𝗗𝗲𝗹𝗮𝘆𝗲𝗱 𝗣𝗮𝘆𝗺𝗲𝗻𝘁 𝗼𝗳 𝗦𝗲𝗿𝘃𝗶𝗰𝗲 𝗧𝗮𝘅 📢 𝗧𝗵𝗲 𝗧𝗿𝗶𝗯𝘂𝗻𝗮𝗹 𝗵𝗲𝗹𝗱: "Since the appellant made the delayed payment of service tax before the issuance of the show-cause notice, no penalty is justifiable."

🔍 𝗙𝗮𝗰𝘁𝘀: 𝗖𝗼𝗺𝗽𝗮𝗻𝘆: M/s Kanoi Textile Agency 𝗜𝘀𝘀𝘂𝗲: Whether the penalty imposed under Section 78 of the Finance Act, 1994 is justified? 𝗔𝗰𝘁𝗶𝘃𝗶𝘁𝘆: The appellant delayed payment of service tax on TDS but paid the amount before the issuance of the show-cause notice. The impugned order dropped reimbursement expenses but imposed a penalty under Section 78 of the Finance Act, 1994.

⚖️ 𝗝𝘂𝗱𝗴𝗲𝗺𝗲𝗻𝘁: The Tribunal ruled that since the appellant paid the service tax before the show-cause notice was issued, no penalty under Section 78 was warranted. The payment was made promptly, and the penalty was therefore dropped. The appeal was allowed, and the penalty was set aside.

📜 𝗖𝗮𝘀𝗲 𝗜𝗻𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻: 𝗧𝗶𝘁𝗹𝗲: M/s Kanoi Textile Agency vs. Commissioner of CGST & Excise, Ranchi 𝗢𝗿𝗱𝗲𝗿 𝗗𝗮𝘁𝗲: 23 March 2023 📜 This ruling clarifies that if the service tax is paid before the show-cause notice, no penalty can be imposed.