9911796707
TMI Blog2024 (6) TMI 621X X X X Extracts X X X X X X X X Extracts X X X X ..... e fact of non-payment of Service Tax has come to light. Therefore, the Department is justified in issuing the demand by invoking the extended period provisions under Section 73 of the Finance Act. However, it is found that When the extended period provisions are invoked, the penalty is required to be imposed under Section 78(1). In the normal course, the penalty would be equivalent to the Service Tax evaded. Interest u/s 75 - HELD THAT:- While the demand pertains to the year 2011-12 to 2014-15, the Appellant has paid the amount of Rs.4,78,730/- in December 2016 and they have paid Rs.3,67,268/- in June 2017. The Appellant is required to pay the interest in terms of Section 75 - as per the proviso to Section 75, the interest payable could be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... He confirmed the demand of Rs.8,45,998/-. In the course of adjudication, the Appellants have paid Rs.4,78,730/- by way of six Challans between the period 14.12.2016 to 22.12.2016. This amount has been appropriated by the Adjudicating Authority in the Order-in-Original. He has also charged interest in terms of Section 75 of the Finance Act, 1994. He imposed a penalty of Rs.8,45,998/- under Section 78 giving an option to pay the confirmed Service Tax along with applicable interest wherein the penalty will be reduced to 25% of the confirmed demand. The Appellants have paid Rs.3,67,268/- during the period 22.06.2017 to 30.06.2017 when the Order-in-Appeal was under process. The Appellant paid an interest of Rs.30,000/- within a period 10.11.201 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he prays that the penalty on the Appellant company should be reduced to 50% in terms of first proviso to Section 78(1) of the Finance Act, 1994. 3. The Ld.AR submits that admittedly the Appellants were not filing the ST-3 Returns because of which detailed investigation was required to be taken up by visiting the premises of the Appellant. The Department officials had to go through all the private records of the Appellant pertaining to five financial years and finally came to a conclusion about the Service Tax liability. He submits that the Appellant was actually charging the Service Tax on their client and was also receiving the same. This would amount to the Appellant receiving the Service Tax from their clients, but not remitted it to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been served notice under the proviso to sub-section (1) of section 73 shall, in addition to the service tax and interest specified in the notice, be also liable to pay a penalty which shall be equal to hundred per cent of the amount of such service tax: Provided that in respect of the cases where the details relating to such transactions are recorded in the specified record for the period beginning with the 8th April, 2011 upto to the date on which the Finance Bill, 2015 receives the assent of the President (both days inclusive), the penalty shall be fifty per cent, of the service tax so determined. Provided further that where such service tax and interest is paid within a period of thirty days of (i) the date of service of notice under th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stands modified on the above lines. 7. So far as interest under Section 75 is concerned, I find that while the demand pertains to the year 2011-12 to 2014-15, the Appellant has paid the amount of Rs.4,78,730/- in December 2016 and they have paid Rs.3,67,268/- in June 2017. The Appellant is required to pay the interest in terms of Section 75. The Ld.Consultant submits that the Appellant is running a small firm whose value of taxable service provided in the Financial Year is below Rs.60.00 Lakhs per annum. In such a case, as per the proviso to Section 75, the interest payable could be reduced 3% per annum. The Adjudicating authority is directed to verify the claim of the Appellant and arrive at the interest payable after taking this provision ..... X X X X Extracts X X X X X X X X Extracts X X X X
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