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TMI Blog2011 (3) TMI 173X X X X Extracts X X X X X X X X Extracts X X X X ..... able interest before issue of show cause notice. 3. In view of the provision under Section 76 (3) of the Finance Act, 1994, the Commissioner dropped the show cause notice issued for imposing penalty under Sections 76 and 77 of the Finance Act, 1994. 4. The argument of the Revenue is that the respondent had not paid penalty equal to 25% of the service tax amount prescribed under Section 73(1A) and therefore, immunity from penalty under Sections 76 and 77 cannot be granted. 5. The learned DR also expresses the fear that if lenient approach is adopted for imposing penalty, assesses may wait for enquiry to start for payment of any service tax. 6. The respondents submits that as per provision of Section 73, there is no need to pay any penalt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 1]- 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 1[Central Excise Officer], but for this sub-section. [Explanation 2,- For the removal of doubts it is hereby declared that no penalty under any of the provisions of this Act or the Rules made thereunder shall be imposed in respect of payment of service-tax under this sub-section and interest thereon]." 8. The Section does not envisage payment of any penalty once service tax is paid in full with interest, of lays down that the concer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... w.- "Provided further that where such person has paid service tax in full together with interest and penalty under sub-section (1A) the proceeding in respect of such person and other person to whom notices are served under sub-section (1) shall be deemed to be concluded. Thus law prescribes conclusion of proceedings against such person to whom SCN is issued under sub-section (1) of section 73. Therefore, it is not merely a conclusion under sub-section (1) but conclusion of all proceeding against such person. Similarly is the position in respect of sub-section (3)of section 73. 4. Accordingly, conclusion of proceeding in terms of sub-section (1A) and (3) of section 73 implies conclu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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