2009 (10) TMI 395

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..... In this case (Tri-Ahmd.) - held that:- extended period could not have been invoked as the appellant have made payment of service tax with interest thus the penalties imposed under various section are liable to be set aside. When the appellant can take the credit and utilize it further for the payment of tax, naturally he would not get any benefit by not paying such a tax and attracting penal .....

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..... Rs.3,92,721/- has been imposed under Section 78 of Finance Act, 1994 and a penalty of Es. 100/- per day during which failure to pay service tax continue has also been imposed under Section 76 of the Finance Act, 1994. 2. Heard both the sides. There is no dispute about the liability of service tax on the appellant. Notification No. 35/2004-ST., dated 3-12-2004 prescribes that the person making .....

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..... Tribunal in the following cases in support of his contention that once service tax and interest are paid no penalty can be imposed. (1) H.P. State Forest Corpn. Ltd. v. CCE, Chandigarh reported in 2009 (14) S.T.R. 515 (Tri. - Del.) (2) Samtel Colour Ltd. v. CCE, Jaipur reported in 2008 (9) S.T.R. 197 (Tri. - Del.) (3) Marudhamalai Murugan Industries (P) Ltd. v. CCE , Sale .....

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..... ion or misdeclaration was made by the party. When the appellant can take the credit and utilize it further for the payment of tax, naturally he would not get any benefit by not paying such a tax and attracting penal provisions of the law. I find considerable force in the arguments of the learned advocate and find the decisions cited by him relevant. Under these circumstances I hold that extended p .....

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..... with interest. Even though from the conclusion as reached above, it is clear that no penalty could have been imposed, yet I still consider that this is a fit case for invoking the provisions of Section 80 of the Finance Act also. In view of the above discussion, the penalties imposed under various sections of Finance Act are set aside and appeal allowed. (Pronounced in Court) - - TaxTMI - TM .....

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