TaxTMI 
TaxTMI 
2009 (3) TMI 411
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....Man-dap Keeper Services', 'Health & Fitness Services and 'Convention Services'. On scrutiny of the records, it appeared that the appellants had contravened the provisions of Sections 68 and 70 of the Finance Act, 1994, hence, the Assistant Commissioner of Service Tax issued a show cause notice dated 17-5-2005 to the appellants requiring them to show cause as to why: (a) An amount of Rs.4,92,922/- being the Service Tax payable under Section 68 of the Act, on the total value of taxable service amounting to Rs.53,32,268/- for the period from Jan.,1999 to Nov., 2004 should not be demanded and recovered from them under Section 73 of the Act. In as much as the assessee suppressed the value of service tax rendered without obtaining the registra....
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....egal and proper and hence, show cause notice was issued, to the appellant by the reviewing authority, under Section 84 of the Finance Act, 1994 for imposition of penalty under Sections 76, 77 and 78 of the Finance Act, 1994. 2.2 The appellant contested the show cause notice on various grounds mainly on the ground that there was bona fide belief on the part of the appellant that the services provided by them to their members is not taxable and Service Tax is applicable only in respect of banquet halls let-out for non-members and also that the Board Circular dated 3-10-2007 will squarely cover the issue, as appellant had paid the entire Service Tax liability and interest thereof before the issuance of show cause notice. The reviewing autho....
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.... the Act. Aggrieved by such an order, the appellants are before us. 3. The learned counsel appearing on behalf of the appellant mainly contended that there was a bona fide belief in the mind of the appellant that they need not discharge the Service Tax liability on the amount charged for usage of open lawn which were given to their members. It is his submission that on being pointed out that the said services will get covered under the Service Tax liability, they discharged the entire Service Tax liability before the issuance of show cause notice. He would draw our attention to the Section 73(3) of the Finance Act, 1994 and submit that the proceedings have to be concluded even if there is a show cause notice under Section 73(1) of the....
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....d the entire Service Tax liability and interest thereof before the issuance of show cause notice on this issue. The Adjudicating Authority considered all these aspects and refrained from imposing any penalties under Sections 76, 77 and 78 of the Finance Act, 1994 on the appellants. We find that the reviewing authority has not considered these facts in his review order. We find that the Board's Circular dated 3-10-2007 is very clear and categorical on this issue. We may reproduce the same. Circular: 137/167/2003-CX4, dated 03-Oct-2007 Payment of Service tax/interest/penalty - Issuance of show cause notice and conclusion of proceedings - Clarifications C.B.E. & C. Letter F. No- 137/167/2006-CX-4, dated 3-10-2007 Government of Indi....
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....sub-section (the proceeding in respect of such person and other person to whom notices are served under sub-section (1) shall be deemed to be concluded." Thus, law prescribes conclusion of proceedings against such person to whom SCN is issued under sub-section (1) of Section 73. Therefore, it is not merely a conclusion under sub section (1), but conclusion of all proceeding against such person. Similar is the position in respect of sub-section (3) of Section 73. 4. Accordingly, conclusion of proceeding in terms of sub-sections (1A) and (3) of Section 73 implies conclusion of entire proceedings under the Finance Act, 1994. It can be seen from the above reproduced Board's Circular at Paragraph 4, the Board has very clearly held that onc....