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TMI Blog2014 (1) TMI 209X X X X Extracts X X X X X X X X Extracts X X X X ..... tly - No benefit would accrue to an assesse who makes such payment if this argument is accepted. C.B.E. & C. vide letter F. No. 137/167/2006-CX-4, dated 3-10-2007 has clarified that section 73 (3) cannot be interpreted in the way it is canvassed now by Revenue - there was some confusion about tax liability - appellant paid tax along with interest once the matter was clear to them and their customers appellant has made out sufficient cause for waiver of penalty under section 80 - Decided in favour of assessee. - Appeal No.ST/621/2012 - FINAL ORDER No.40661/2013 - Dated:- 20-12-2013 - Shri Mathew John, J. For the Appellant : Shri R. Arumugam, Advocate For the Respondent : Shri K.S.V.V. Prasad, JC (AR) JUDGEMENT 1. The appel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... out, it was also paid before adjudication. Therefore, his submission is that such payment should be sufficient for the purpose of section 73 (3) of Finance Act, 1994. He argues that section 73 (3) envisages only payment of service tax. It is only by way of an Explanation it is clarified that interest will be payable. Therefore, for the reason that interest was paid after the issue of notice, benefit of section 73(3) cannot be denied. He argued that in such circumstances there cannot be a penalty under section 76 of Finance Act, 1994. Therefore, he requests that penalty may be set aside. 3. Ld. Counsel also submits that appellant had requested for waiver of penalty by exercising powers under section 80 of the Finance Act, 1994 for the reas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ition as compared to an assessee who would not have filed paid any tax and did not file any return. In latter type of cases penalty under section 78 would be applicable and the assessee gets concession in paying 25% of duty as penalty if such payment is made promptly. The argument raised by Revenue can be canvassed even in a situation wherein an assessee pays both tax and interest before issue of SCN. That is, the interpretation canvassed by Revenue is to the effect that anybody who pays service tax along with interest before issue of SCN will be liable to pay penalty under section 76 putting such assessees at a disadvantageous position as compared to an assessee who does not make payments at all before issue of SCN. No benefit would accrue ..... X X X X Extracts X X X X X X X X Extracts X X X X
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