2010 (8) TMI 379

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..... d excluded at the threshold for the reason that the assessee who was otherwise liable to pay interest under section 11AC had discharged the tax and the interest due before the issue of show cause notice. The ratio applied to similar penal provisions of the Act.
P. KARTHIKEYAN, JJ. ORDER 1. These are appeals filed by the Revenue seeking to vacate the orders of the Commissioner (Appeals) which vacated the following orders of the original authority : Sl. No. Appeal No. Order-in- Appeal No. Period of Dispute Amounts involved Tax (Rs.) Penalty (Rs.) 1. ST/182/07 54/07-CE dt. 15-2-07 September 03 to March 05 Rs. 13,675 Rs. 100 per day u/s 76 Rs. 500 u/s 77 Rs. 13,675 u/s 78 2. ST/183/07 63/07-CE dt. 16-2-07 August 02 to M .....

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..... ling service tax return etc. After due process of law, the original authority found in each case that the respondent had wilfully evaded payment of tax and did not follow the statutory provisions. All the respondents paid the tax due along with applicable interest before issue of show cause notice in each case. In adjudication, the original authority found that the respondents had wilfully suppressed the fact of providing taxable service and evaded the tax due; they wilfully failed to follow the statutory provisions. Accordingly, he demanded the tax, interest and imposed penalties as indicated in the table in the first paragraph of this order. 4. Vide the impugned order, the Commissioner (Appeals) vacated the demand of interest and the pe .....

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..... since the respondent had paid the duty with interest when they were caught by the department, the duty with interest paid before the issuance of show cause notice was not voluntary. This ratio applied to similar cases involving demand of service tax. 5.3 It is submitted that in the instant cases, the respondents paid the amounts confirmed after the intervention of the department; but for the investigation initiated by the department, the amounts would have remained unpaid. Moreover, in terms of section 75 of the Act, the assessee who is liable to pay service tax fails to credit the tax to the account of the Central Government within the period prescribed, shall pay simple interest at the specified rate for the period of delay in paying th .....

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