Show cause notice — Waiver of, on payment of Service tax with interest - Service Tax - 48/2008

Show cause notice — Waiver of, on payment of Service tax with interest [Commissioner of Central Excise, Madurai , Trade Notice No. 48/2008, dated 3-10-2008 ] There are instances where the assessees are reluctant to pay the duty involved in the case of short/non payment etc. of duties in contravention of the Act/Rules, due to apprehensions about the follow-up penal proceedings by the Department. 2. In this regard it is hereby brought to the notice of the assessees that they can make immediate payments of the Central Excise duty/Service Tax involved as soon as they receive the intimation from the Central Excise Officers determining the amount of duty/service tax involved, under the provisions of Section 11A(2B) of Central Excise Act, 1944 and under the provisions of Section 73(3) of Finance Act, 1994. For the convenience of the trade the provisions of the Section 11A(2B) (not reproduced) /Section 73(3) (4) ibid are furnished below: * * * * * Section 73(3) (4) of Finance Act, 1994 (3) Where any service tax has not been levied or paid or has been short-levied or short-paid or erroneously refunded, the person chargeable with the service tax, or the person to whom such tax refund has erroneously been made, may pay the amount of such service tax, chargeable or erroneously refunded, on the basis of his own ascertainment thereof, or on the basis of tax ascertained by a Central Excise Officer before service of notice on him under sub-section (1) in respect of such service tax, and inform the Central Excise Officer of such payment in writing, who, on receipt of such information shall not serve any notice under sub-section (1) in respect of the amount so paid Provided that the Central Excise Officer may determine the amount of short payment of service tax or erroneously refunded service tax, if any, which in his opinion has not been paid by such person and, then, the Central Excise Officer shall proceed to recover such amount in the manner specified in this section, and the period of "one year" referred to in sub-section (1) shall be counted from the date of receipt of such information of payment. Explanation. — For the removal of doubts, it is hereby declared that the interest under section 75 shall be payable on the amount paid by the person under this sub-section and also on the amount of short payment of service tax or erroneously refunded service tax, if any, as may be determined by the Central Excise Officer, but for this sub-section. (4) Nothing contained in sub-section (3) shall apply to a case where any service tax has not been levied or paid or has been short-levied or short-paid or erroneously refunded by reason of — (a) fraud; or (b) collusion; or (c) wilful mis-statement; or (d) suppression of facts; or (e) contravention of any of the provisions of this Chapter or of the rules made thereunder with intent to evade payment of service tax. 3. In view of the above provisions it is brought to the notice of the trade and industry that show cause notice under Section 11A(1) of Central Excise Act, 1944 and under Section 73(1) of Finance Act, 1994 will not be served to the defaulters provided they made immediate payment of the duty involved along with interest as discussed above except under the situations mentioned in Explanation 1 provided under Section 11A(2B) and Sub-section (4) of Section 73 mentioned above. 4. This issues with the approval of the Commissioner.