9911796707
TMI Blog2014 (9) TMI 253X X X X Extracts X X X X X X X X Extracts X X X X ..... appearing on behalf of the appellant would draw our attention to the issue and submit that the appellant had belatedly paid the service tax liability along with interest. It is her submission that the said service tax liability was discharged on their own. She would submit that the show cause notice was issued for imposition of penalty under the provisions of Section 76 of the Finance Act, 1994 on the ground that there was a non-payment of service tax liability. She would submit that the judgment of the Hon'ble High Court of Gujarat in the similar issue has held that there was no reason to impose penalty on the assessee, following the judgment of the Hon'ble High Court of Karnataka in the case of Adecco Flexione Workforce Solution Limited ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... TU, Bangalore Vs. ADECCO Flexione Workforce Solutions Limited., reported in - 2012 (26) S.T.R. 3 (Kar.) = 2011-TIOL-635-HC-KAR-ST. 3. This was on the premise that admittedly the assessee had paid the tax even before issuance of show cause notice. In terms of Section 73 (3) of the Finance Act, 1994, he, therefore, contended that no penalty should be imposed. This contention was accepted by the Tribunal. 4. Counsel Shri Oza for the department, however, contended that the Tribunal overlooked the provision of Subsection (4) of Section 73 of the Finance Act, 1994, which provides that: (4) Nothing contained in subsection (3) shall apply to a case where a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aid both the service tax and interest before issuance of a show cause notice under the Act, subsection 3 of section 73 of the Act, prohibits initiation of proceedings for recovery of penalty. 6. When there is a finding of fact that this was not a case of non-payment of Service Tax with intent to evade the payment of the same, question of applying Subsection (4) of Section 73 of the Finance Act, 1994 and resultantly exclusion of application of Subsection (3) thereof, would not arise. The question of law otherwise raised by the Revenue would be gone into in a proper case involving the facts which may make Subsection (4) of Section 73 applicable. 6. In our considered view, the ratio as reproduced above is squarely on the issue and accordingl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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