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TMI Blog2010 (2) TMI 137X X X X Extracts X X X X X X X X Extracts X X X X ..... f section 73(3) restrains the department from issuing any show-cause notice for demand of service tax from an assessee where they have already self-determined and paid up the tax under intimation to the department. This provision of law in no manner restrains the authorities from taking penal action against such an assessee for default / delay of payment of service tax. This is what happened in the instant case. The extent of penalty which could be imposed on an assessee in appropriate circumstances like those obtaining in the present case, under Section 76, is Rs. 200/- per day or @ 2% of the amount of tax per month, whichever is higher. – Decided against the assessee - ST/170/2009 - A/137/2010-WZB/C-IV/(SMB) - Dated:- 24-2-2010 - Appea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 2. Learned consultant for the appellant submits that, as the service tax was paid before the issuance of show-cause notice, any penalty is not liable to be imposed on them under Section 76 of the Finance Act, 1994. He has also argued that even the show-cause notice was not liable to be issued. In this connection, the consultant has referred to sub-section (3) of the Section 73 of the Act. According to the learned consultant, where the tax was self-determined and paid by the assessee under intimation to the department, there was no question of issue of any show-cause notice for any purpose whatsoever. The consultant has relied on the Tribunal's decision in Commissioner vs. Sagar Enterprises 2009-TIOL-2142-CESTAT-AHM. It is submitted th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Finance Act, 1994 and the same provides for a penalty on an assessee for default of service tax simpliciter. There is no requirement, for such penalty, that the assessee should have committed default with intent to evade payment of the tax. The appellant had got themselves registered with the department as early as in 2005 in respect of 'Maintenance and Repair Service'. They must be aware of their tax liability since then. However, during the period of dispute, they defaulted payment of service tax. I am told that this delay is to the extent of over 150 days, which is not in dispute. It is imperative for any assessee to pay tax in due time, failing which they will be penalised. Such penalty cannot be resisted in any manner other than provi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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