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TMI Blog2014 (8) TMI 55X X X X Extracts X X X X X X X X Extracts X X X X ..... iabilities which arise in the case of evasion of tax who have not followed the law. - once the amount is paid with interest, show-cause notice could not have been issued for imposition of penalty. In any case for imposition of penalty there is no specific time limit laid down in the law. Another fact that has to be taken into account is the provision in the law that when there is suppression of facts or misdeclaration etc. where extended period can be invoked, an assessee could pay service tax plus interest and 25% of the service tax towards penalty before issue of show-cause notice. This is an alternative which is provided in the law itself to allow assessees to correct the mistakes/omissions and escape penalty of 100% under Section 78 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y had in mobilizing money. After finding this out, letter was written by the Range Officer to the appellant on 11.04.2007 requesting the appellant to pay the amount with interest. However, the assessee in their letter dated 11.05.2007 wrote to the department that they had not taken excess credit at all and there was some typographical error and therefore the mistake had occurred. After this another letter was written to the appellant after contacting them over phone stating that they had taken the credit twice. Thereafter the appellant paid the amount of CENVAT credit with interest which means that the appellants admitted that they had taken credit twice. Thereafter proceedings were initiated on 30.07.2008 requiring the appellants as to why ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 [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 [Central Excise Officer] may determine the amount of short-payment of service tax or erroneously refunded service tax, if any, which in his opinion has not been paid by such person and, then, the [Central Excise Officer] shall proceed to recover such amount in the manner specified in thi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in default and if he makes the payment of service tax and interest and subsequently the department finds that such payment had arisen because of miss-declaration or suppression, no action can be taken even if there is a deliberate intention to evade tax. The provisions of sub-section 4 is to ensure that just because someone pays the tax and interest, he does not escape from other liabilities which arise in the case of evasion of tax who have not followed the law. In this case the circumstances discussed would show clearly that appellants deliberately took excess credit. In this view of the matter, we are unable to consider the submission that once the amount is paid with interest, show-cause notice could not have been issued for impositi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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