Penalty Set Aside as Service Tax Paid Before Notice and No Intent to Evade Found

Upon being pointed out, the appellant paid the tax, while claiming abatement and adjustment of excess Service Tax paid through ST-3 returns. On appeal, the Commissioner (Appeals) also allowed adjustment of excess Service Tax paid, thereby settling the Service Tax liability along with interest. Taking an overall view, the Tribunal found no deliberate intent to evade Service Tax. In brief, the issue pertains to non-payment of service tax on Goods Transport Agency (GTA) service on Reverse Charge Mechanism (RCM). Therefore, the non-payment of service tax was not intentional and there was no such intent not to pay the said service tax.