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TMI Blog2017 (10) TMI 966X X X X Extracts X X X X X X X X Extracts X X X X ..... spective of the duration and pay the same with interest, the case has to be closed - In the present case, the bar under Section 73 (4) cannot operate. While upholding the tax liability of the appellant with interest, I find the penalty imposed based on the proceedings initiated is not justifiable - appeal allowed in part. - 1636 of 2011 (SM) - 53336/2017 - Dated:- 16-5-2017 - Shri B. Ravichandran, Member (Technical) For The Appellant : Shri Vijayan Khongal, C.S. For The Respondent : Shri M.R. Sharma, Authorized Representative (DR) Order Per. B. Ravichandran :- The appeal is against order dated 29/07/2011 of Commissioner (Appeals-II), Jaipur. The appellant is only contesting the imposition of penalty on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 66A. Upon intimation by the Department during the course of enquiry, the appellants discharged the full liability with interest. The matter should have been closed in terms of Section 73 (3) of the Act and there is no justifiable reason to initiate demand proceedings in respect of tax already discharged and not disputed. The ingredients mentioned in Section 73 (4) are not available in the present case and there is no bar in closure of their case without issue of show cause notice. He further submitted that the concept of payment of service tax by reverse charge, by recipient of service, is a new principle which was also subjected to various litigations and clarification. The legal position got settled only after the decision of Hon ble Bo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ability paid by the appellant was for period spread over more than three years. I find that as long as full service tax liability with interest is discharged by the assessee and the ingredients of Section 73 (4) could not be brought out with supporting evidence, the case has to be closed under Section 73 (3). Such closure is not barred only by the reason that the demand pertains to longer period. When the assessee admits the liability, irrespective of the duration and pay the same with interest, the case has to be closed. In the present case, the bar under Section 73 (4) cannot operate, for the reasons pleaded by the appellant. I find no justifiable reasons recorded by the lower Authorities, for non-closure of case under Section 73 (3). Acc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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