2011 (11) TMI 517

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....rior to 1-11-2000, the DTS was paying service tax from the Government account of that department to Government account "0044" for receiving service tax. Even after the respondents were constituted as a company, they continued to pay service tax on services provided by BSNL through such mechanism of book transfer. According to Revenue, that was not a proper method of paying service tax as prescribed under the Service Tax Rules and therefore, show cause notice was issued asking them why service tax of Rs. 4,14,79,640/- should not be recovered from them under Section 73(1) of the Finance Act, 1994 along with appropriate interest and why penalties under Sections 76, 77 and 78 of the Act should not be imposed on them. On adjudication of the show....

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....2,380/- have been deposited by the appellants through book adjustment through their headquarters office at Lucknow. Firstly the Adjudicating Authority prior to raising the demand, must have confirmed from the Department concerned as to whether the said amount has been deposited by the Lucknow office of the appellants or not and if yes, the same has been treated as payment against service tax or not. And once, if the service tax has been deposited by any assesse, it cannot be demanded against. So, the Adjudicating Authority is required to do the needful and then pass appropriate order. In my opinion, the case needs to be re-examined on the points observed in the foregoing paras and then the Adjudicating Authority is required to pass a fre....