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TMI Blog2013 (6) TMI 136X X X X Extracts X X X X X X X X Extracts X X X X ..... ation bearing No.AAACC1206DST007. During the course of reconciliation for the financial year 2007-08 and 2008-09 by the audit party, it was observed that the appellant had made short payment of service tax of Rs.1,53,581/- during the year 2007-08. On pointing out, the appellant agreed upon and made payment of Rs.1,54,587/- vide e-payment No.00635 dated 06.08.2009. But they had not paid interest as applicable. A show cause notice, therefore, was issued to the appellants on 28.01.10. The adjudicating authority has confirmed the demand of Rs.1,53,581/- under Section 73(1) of the Finance Act, 1994 as the said amount has already been paid he appropriated the same and also imposed penalty under Section 75, 76 and 78 of the Finance Act, 1994. 3. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... being pointed out by the audit party that there is a short payment of service tax. The said short payment on service tax was explained before the lower authorities in a way that the said short payment has taken place only for the month of March 2008 and this short payment has taken place due to non-receipt of details from their units situated all over Gujarat. 8. On careful consideration of the submissions made by both sides, I find that the provisions of Section 73(3) of the Finance Act, 1994 are read. (3) Where any service tax has not been levied or paid or has been short-levied or short-paid or erroneously refunded, the person chargeable with the service tax, or the person to whom such tax refund has erroneously been made, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion and interest thereon.] 9. I find that the above said provisions are so clear, in as much as, if short payment of tax is ascertained by the assessee on his own or being pointed out by a central excise officer and if he pays the said amount before the issuance of show cause notice along with interest, the provisions very clearly lay down that no show cause notice should be issued to the appellant. I find that in the case in hand, all the conditions of provisions of Section 73(3) of the Finance Act, 1994 stands complied with by the assessee. 10. I find that in an identical situation, Hon'ble High Court of Karnataka in the case of Adecco Flexione Workforce Solutions Ltd. (supra) while disposing the appeals filed by the Revenue recorded as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o have not paid service tax and interest in spite of service of notice calling upon them to make payment and certainly not to harass and initiate proceedings against persons who are paying tax with interest for delayed payment. It is high time, the authorities will change their attitude towards these tax payers, understanding the object with which this enactment is passed and also keep in mind the express provision as contained in sub-sec. (3) of Sec. 73. The Parliament has expressly stated that against persons who have paid tax with interest, no notice shall be served. If notices are issued contrary to the said Section, the person to be punished is the person who has issued notice and not the person to whom it is issued. We take that, in i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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