9911796707
TMI Blog2025 (1) TMI 347X X X X Extracts X X X X X X X X Extracts X X X X ..... egation regarding suppression should not only be based on the non-filing of returns, but with an intention to evade tax. Here, in the case on hand, the assessee has pleaded that it could not file the ST-3 returns in time because it had no money or, rather they were under financial constraints due to which, they could also not remit the tax and therefore, they could not fill up the requirements of online filing of the returns, which, according to them was a bona fide reason for on filing of their ST3 returns and pay the tax in time. But, however, the fact remains that even before the issuance of SCN, they had remitted the entire tax demand along with interest - there was a plausible explanation on record, by the appellant, which was not foun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he entire service tax with applicable interest liability as evidenced by their letter dated 07.01.2011, much before the issuance of the Show-cause notice. The SCN was subsequently issued on 19.02.2013. In the said notice the only proposal was for appropriation of the amount paid towards service tax liability and imposition of penalties under Ss. 76, 77 and 78 of the Finance Act, 1994. In response to the above show cause, they have contended that since they had already paid the tax along with the entire interest before the issuance of show cause, the invocation of extended period under Section 73(3) ibid was not justifiable and, in this regard, they had placed reliance on various judicial pronouncements. In the impugned order, however, the C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Suppression of fact with intent to evade tax is to be discerned from the Show-cause notice itself since, Section 73(3) restricts the issuance of SCN where duty liability is paid with interest, in which case no such SCN shall be issued. Hence, the objective satisfaction should be arrived at before issuing the SCN and not during adjudication. Section 73(3) therefore, casts a serious responsibility on the officer who is issuing or proposing to issue SCN, to arrive at or decide or ascertain that the assessee has remitted the tax along with applicable interest. The allegation regarding suppression should not only be based on the non-filing of returns, but with an intention to evade tax. 6. Here, in the case on hand, the assessee has pleaded tha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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