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TMI Blog2009 (8) TMI 289X X X X Extracts X X X X X X X X Extracts X X X X ..... tax with the department, which was noticed by the authorities on verification of the records which were called for from the appellant. The period involved in this case is from January 2007 to June 2007. The appellant's representative in a statement had admitted that there is a delay in discharging the service tax; due to severe financial crunch; due to non-release of payment from one of their major clients and accepted to pay the dues along with interest and accordingly paid the same on 5-7-2007 and 19-7-2007. The lower authorities issued a show cause notice dated 31-1-2008 for confirmation of demand of service tax paid by the appellant, interest at appropriate rate and appropriation of amounts of service tax and interest and also impositi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... id even before the conclusion of the proceedings. He relies on the Tribunal's decisions in the cases of Essar Steel Ltd. v. Commissioner of Central Excise & Customs, Surat-I [2009 (13) S.T.R. 579 (Tri. - Ahmd.)]; Vee Aar Secure v. Commissioner of Service Tax, Bangalore [209 (14) S.T.R. 50 (Tri. - Bang.)] and V.S.T. Tillers Tractors v. Commissioner of Central Excise, Mysore [2009 (14) S.T.R. 159 (Tri. - Bang.)]. 4. The learned DR on the other hand submits that the appellant could have sought for loan or overdraft facility from the financial institution to over come his financial hardship and could have deposited the service tax. He submits that this view has been taken by the tribunal in the case of Jupiter Sea & Air Services reported in 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... C.B.E & C. Circular dated 3-10-2007 had clarified as under:- "Subject: Issuance of SCNs for levy of penalty in the cases where service tax is paid suo motu by the assessee - Reg. Section 73(1A) of the Finance Act, 1994 provides for conclusion of adjudication proceedings in the cases of willful suppression/fraud/collusion if the taxpayer prays service tax liability along with interest and a penalty equal to 25% of service tax amount, within a period of one month from the date of issue of SCNs. Similarly, Section 73(3) provides conclusion of adjudication proceedings in other cases on payment of service tax and interest. 2. A question has been raised as to whether the conclusion of proceedings in such cases is limited to the action taken u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ischarged the service tax liability along with interest, and the proceedings remain concluded. 6. We find that this Bench in the case of Vee Aar Secure (supra) has held as under:- "5. On a very careful consideration of the entire matter, we find that in the case law of Karnataka High Court, cited by the leaned SDR, the High Court actually upheld the order of the original authority imposing penalty. In this case also, in our view, the case law does not help the Revenue. In the present case, the original authority has given a reasoning for waiver of penalty in exercise of his powers under Section 80 of the Finance Act, 1994. There was actually no mala fide and intention to evade payment of service tax. Once the lapse was pointed out, the ap ..... X X X X Extracts X X X X X X X X Extracts X X X X
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