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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 ..... are paying service tax with interest promptly. They are paid salary to act in accordance with law and to initiate proceedings against defaulters who 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. 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. In ignorance of law, the authorities are indulging in the extravaganza and wasting their preciou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. Aggrieved by such an order appellant preferred an appeal before the first appellate authority. The first appellate authority did not agree with the contentions raised by the appellant and upheld the order in original. 4. Ld. chartered accountant appearing on behalf of the appellant would submit that the appeal in this case is only against the penalty imposed under Section 76 of the Finance Act, 1994. It is his submission that the entire amount of the service tax liability and the interest thereof stands paid o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (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, may pay the amount of such service tax, chargeable or erroneously refunded, on the basis of his own ascertainment thereof, or on the basis of tax ascertained by a Central Excise Officer before service of notice on him under sub-section (1) in respect of such service tax, and inform the 1[Central Excise Officer] of such payment in writing, who, on receipt of such information shall not serve any notice under sub-section (1) in respect of the amount so paid : Provided that the 2[Central Excise Officer] may determine ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 under: [Judgment per : N. Kumar, J.]. - Both these appeals are preferred by the assessee challenging the order passed by the Tribunal as well as the Appellate Commissioner who have held that the assessee is not liable to pay any penalty under Section 76 of the Finance Act, 1994 and therefore, set aside the order passed by the lower authorities imposing penalty. 2. Facts are not in dispute. The assessee has paid both the service tax and interest for delayed payments before issue of show cause notice under th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns 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 ignorance of law, the authorities are indulging in the extravaganza and wasting their precious time and also the time of the Tribunal and this Court. It is high time that the authorities shall issue appropriate directions to see that such tax payers are not harassed. If such instances are noticed by this Court hereafter, certainly it will be a case for taking proper action against those law breakers. 4. In that view of the matter, we do not see any merit in these appeals. The appeals are dismissed. 5. Mark ..... X X X X Extracts X X X X X X X X Extracts X X X X
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