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TMI Blog2012 (9) TMI 813X X X X Extracts X X X X X X X X Extracts X X X X ..... ch person to whom notices are served under sub-section (1) shall be deemed to be concluded. In the instant case was not contesting the Service Tax liability and had deposited the entire service tax and interest much before the issuance of show cause notice and discharged 25% of the amount of service tax liability, and at that time, neither any penalty was levied by the appellant nor any quantum of penalty was fixed. Therefore, the assessee has not committed any illegality in not depositing any penalty amount. Penalty levied against the assessee in excess of 25% u/s 76 and 78 of the Finance Act, 1994, has rightly been set aside by the Tribunal - TAX APPEAL NO. 572 OF 2012 - - - Dated:- 3-9-2012 - V.M. SAHAI AND N.V. ANJARIA, JJ. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... payments made against the service tax and interest liability of the assessee: ST + Cess Interest Date of Payment 83940 0 15.02.2006 200000 0 07.02.06 200000 0 10.03.06 116388 3127 28.03.06 7332 28914 13.03.06 11204 68120 14.03.06 149738 16324 28.03.06 768602 116485 28.03.06 3. The Joint Commissioner, Service Tax, Ahmedabad, issued a show cause notice on 22.10.2008 proposing to recover service tax of Rs. 7,68,602/- on the value of Rs. 86,19,305/- during the period 01.07.2003 to 31.12.2005 under the proviso to section 73(1) of the Finance Act, 1994 ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... paid along with interest, before the issuance of show cause notice. Therefore, the proceedings initiated against the assessee for imposition of penalty in excess of 25% was liable to be set aside. 6. We are in agreement with the view taken by the Tribunal, though Mr. Darshan M. Parikh, learned counsel for the appellant has vehemently urged that under section 73 read with sub-section (1A) of the Finance Act, once show cause notice has been issued then the assessee is required to make payment of penalty. He has further argued that even before the issuance of show cause notice if the service tax and interest has been deposited by the assessee, still he would require to deposit the penalty as he would have known as to what penalty would be l ..... X X X X Extracts X X X X X X X X Extracts X X X X
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