2012 (6) TMI 637

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.... Mall for the Respondent. ORDER M.V. Ravindran, Judicial Member - This stay petition is filed for the waiver of pre-deposit of penalty imposed by the first appellate authority. On an appeal filed by the Revenue before him against Order-in-Original which has not been imposed any penalty under Section 76. 2. After hearing both sides for some time on the stay petition, we find that the appeal it....

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....iterates the findings of the first appellate authority. 6. It is not in dispute in this case that the appellant had discharged the entire service tax liability and interest thereof before the issuance of the show cause notice. The issue is regarding the imposition of penalty on the appellant under Section 76 of the Finance Act, 1994. We find that once the appellant has already discharged the serv....

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..... 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 penally under Sec.76 of the Act.      3. Unfortunat....

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....time, the authorities will change their attitude towards these tax payers, understanding the object with which this enactment is passed and also keep in mind the express provision as contained in sub-Sec. (3) of Sec. 73. The Parliament has expressly stated that against persons who have paid tax with interest, no notice shall be served. If notices are issued contrary to the said Section, the person....