TaxTMI 
TaxTMI 
2011 (9) TMI 808
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....ection' and inappropriately registered by the registry. I have examined the grounds of the appeal and the submissions of the respondent and have also heard both sides. 2. There was a dispute between the assessee and the department as to whether the former was liable to pay Service Tax under the head 'Commercial Training and Coaching Service' over a period including the period from 27-9-2004 to 8-3-2005. The assessee had not paid Service Tax even after collecting it from the students (service recipients) during the said period, nor had they filed Service Tax returns. However, during the course of investigations launched by the department, the party paid Service Tax with interest thereon for the period from 27-9-2004 to 8-3-2005. This p....
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....al Telecom v. CST, Mumbai - 2009 (15) S.T.R. 553 (Tri.-Mumbai) 4. Learned counsel for the respondent submits that any suppression of taxable value of the service was not alleged in the show-cause notice and also that a major part of the demand of Service Tax is within the normal period of limitation as reckoned from the due date of filing Service Tax returns. In this connection, reliance is placed on Ashpra Textiles Pvt. Ltd. v. C.C.E., Mumbai-II - 2010 (253) E.L.T. 138 (Tri.-Mumbai). Therefore, according to the learned counsel, the show-cause notice cannot be considered to have been issued under the proviso to Section 73(1) of the Finance Act, 1994 and consequently there can be no penalty on the respondent under Section 78 of the Act....
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....ce. It has, therefore, to be held that the proviso was not invoked by the department. Consequently the appellant's prayer for imposing penalty on the respondent under Section 78 is not acceptable. 6. The Board's circular dated 3-10-2007 deals with two situations. In one situation, Section 73(1A) of the Finance Act, 1994 (which proviso is no more in the statute book today) is invoked in the show-cause notice and the noticee pays Service Tax with interest thereon along with penalty equal to 25% of the Service Tax within 30 days of receipt of the notice. In such a situation, as per the Board's clarification, the payments so made by the party should conclude the adjudication proceedings. In other words, the party will have no further liab....