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TMI Blog2025 (1) TMI 1213X X X X Extracts X X X X X X X X Extracts X X X X ..... s in brief germane are as follows: The petitioner is said to be in the business of establishment / construction of petrol pumps. He was not assessed the Service Tax at the time when he began his avocation of construction of petrol pumps. Learned counsel for the petitioner submits that this was due to mistaken notion that Service Tax was not applicable to a works contract, that he undertakes of establishment of petrol pumps, Service Tax had not been paid. 4. A show cause notice comes to be issued on 10.10.2013 for the first time demanding payment of Service Tax, the petitioner then furnishes his reply and pays the entire Service Tax including penalty. This can be gathered from the order passed by the second respondent who captures in his order, the case of the petitioner. Therefore, to quote the order becomes necessary, it reads as under: "FINDINGS 6. I have perused the case proceedings, show cause notice, reply to show cause notice and relevant documents placed in the file. The issue before me for decision are: (a) Whether the service of construction, installation & maintenance of petrol bunks owned by M/s. HPCL and M/s BPCL are classifiable under the category of 'Wor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 12 along with interest including late fees of Rs 16,000/- for delay in filing of periodical ST.3 returns totally amounting to Rs 4,06,129/- by Challans. The Challan details are as per the data available in ACES/NSDL challan database. 7. Having answered the issue of classification of the services provided by the service provider and their service tax liability, I now take up the issue whether the service provider is liable for imposition of penalties under Sections 76, 77 and 78 of the Finance Act, 1994? I find from records that the assessee had failed to register themselves within 30 days of the commencement of service as required under Section 69 of the Finance Act, 1994, therefore, they are liable for imposition for penalty under Section 77 of the Finance Act, 1994. They have also failed to pay service tax payable within due dates prescribed under Section 68 of Finance Act, 1994, accordingly, I hold that the service tax not paid is liable to be recovered along with interest at applicable rates in terms of provisions of Section 73 and Section 75 of Finance Act, 1994. They are also liable for imposition of penalty under Section 76 of the Finance Act, 1994. The late fee demand ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned by M/s. HPCL and M/s BPCL under the category of 'Works Contract Service' under the provisions of Section 65(105) (zzzza) of the Finance Act, 1994. b) I confirm the demand of service tax including EC and S&H EC amounting to Rs. 19,35,575/- (Rupees Nineteen Lakhs thirty five thousand five hundred and seventy five only), for the services rendered for the period from 01.04.2008 to 31.03.2012 under the category of 'Works Contract Service c) I order appropriation of service tax of Rs. 19,35,575/- (Rupees Nineteen Lakhs thirty five thousand five hundred and seventy five only) Service Tax including EC and S&H EC already paid by them towards the demand above. d) I confirm the demand of interest to be recovered from them under Section/s of the Finance Act, 1994 on the above amount. e) I order appropriation of interest of Rs. 3,90,129/- (Rupees Three Lakhs ninety thousand one hundred and twenty nine only) paid during investigation towards the demand at (d) above. f) I impose Penalty on them under the provisions of Section 76 of the Finance Act, 1994 for failure to pay service tax by due dates. g) I impose Penalty of Rs 10,000/- under the provisions of Section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re, 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 authority as well as the appellate authority seem to think. If an assessee does not pay the tax within the stipulated time and regularly pays tax after the due date with interest. It is something which is not pardonable in law. Though the law does not say so, authorities working under the law seem to think otherwise and thus they are wasting that valuable time in proceeding against persons who are paying service tax with interest promptly. They are paid salary to act in accordance with law and to initiate proceedings against d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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