9911796707
TMI Blog2017 (5) TMI 1085X X X X Extracts X X X X X X X X Extracts X X X X ..... td. [2011 (9) TMI 114 - KARNATAKA HIGH COURT], where it was held that after the payment of service tax and interest is made and the said information is furnished to the authorities, then the authorities shall not serve any notice under Sub-Sec.(1) in respect of the amount so paid - provisions of Section 73(3) of the FA, 1994 would apply and the revenue authorities should not have issued any SCN to the appellant for the demand of imposition of penalties - demand of tax with interest upheld - appeal allowed - decided partly in favor of appellant. - ST/87074/13 - A/86832/17/STB - Dated:- 31-3-2017 - Mr. M.V. Ravindran, Member (Judicial) And Mr. C.J. Mathew, Member (Technical) Shri Nimesh Mehta, Advocate for appellant Shri D. Nagve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the ground that the entire service tax liability and the interest is paid before the issuance of show-cause notice and hence provisions of Section 73(3) of the Finance Act, 1998 will be applicable. 5. Learned D.R. reiterates the findings of the lower authorities. 6. On careful consideration of the submissions made by both sides, we find that the appellant has now discharged the service tax liability and the interest thereof, we uphold that part of the impugned order that confirms the service tax liability and the interest thereof. 6.1 As regards the various penalties imposed by the adjudicating authority under the provisions of Section 70, 77 and 78 of the Finance Act, 1994, we find strong force in the contentions raised by learn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 the Act. Sub-sec. (3) of Section 73 of the Finance Act, 1994 categorically states, after the payment of service tax and interest is made and the said information is furnished to the authorities, then the authorities shall not serve any notice under sub-sec. (1) in respect of the amount so paid. Therefore, authorities have no authority to initiate proceedings for recovery of penalty under Sec. 76 of the Act. 3. Unfortunately the assessing au ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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 a copy of this order to the Commissioner of Large Tax Payers Unit who is in charge of collection of service tax to issue proper circular to all the concerned authorities, not to contravene this provision, namely sub-section (3) of Section 73 of the Act. 6.2 The ratio as laid down by the Hon'ble High Court of Karnataka as reproduced herein above would apply in full force in the case in hand. Accordingly, we hold that prov ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
