9911796707
TMI Blog2015 (4) TMI 1111X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee pays the entire demand with interest and penalty to the extent of 25% of the Service tax demanded, cannot challenge either the liability of Service tax and interest or penalty alone and the matter has to be treated as closed. No doubt, there is an instruction issued by the Board that once the assessee pays the Service tax and interest and intimates the department of the same on the basis of assessment of tax liability of the Central Excise Officer no show cause notice for differential amount of Service tax or interest can be demanded after one year except where there is a case for invoking suppression of facts, misdeclaration, fraud, etc. Further, there is no law laid down anywhere that the matter has to be considered as settle ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n, commissioning and installation worked out to ₹ 4,48,434/-. When pointed out, the appellant agreed to the stand of the Department and paid an amount of ₹ 11,96,549/-. As regards the duty paid, the appellant requested that the remaining amount may be adjusted to the commercial or industrial construction service. With respect to the commercial or industrial construction service, the demand worked out to ₹ 7,99,038/-. After adjustment with the excess duty paid, the liability worked out to ₹ 50,963/-. Demand in respect of works contract service was worked out to ₹ 24,38,810/- after deducting the payment of the appellant from the total demand of ₹ 29,65,782/-.The demand was raised invoking the extended perio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... spects into consideration while deciding the issue and therefore the Commissioner has erred in setting aside the penalty under Section 78 of the Finance Act, 1994. 5. Even though, I took the help of both the A.Rs present in the Court and my own knowledge of law, I could not find any legal provision which provides that once an assessee pays the entire demand with interest and penalty to the extent of 25% of the Service tax demanded, cannot challenge either the liability of Service tax and interest or penalty alone and the matter has to be treated as closed. No doubt, there is an instruction issued by the Board that once the assessee pays the Service tax and interest and intimates the department of the same on the basis of assessment of ta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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