TaxTMI 
TaxTMI 
Liability of service tax and interest
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....iability of service tax and interest<br> Query (Issue) Started By: - Bhavesh Rathor Dated:- 21-8-2008 Last Reply Date:- 21-8-2008 Service Tax<br>Got 1 Reply<br>Service Tax<br>My client is contactor he worked for housing board society for construction of their housing projects (LIG, MIG houses).He registered him self under construction service since 2004. but does not take registration under Constr....
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....uction of Residential complex Service, therefore he does not pay Tax on time and also fail to submit returns in time. In year 2007 he take registration under CCS (i.e. After two years from 16-06-2005 applicable of CCS, in 2007) and he has paid full amount of ST with interest thereon and filed all such returns up to date. Now he received show cause notice cum demand notice on 13-06-2008 in notice t....
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....he department has asked to him to pay full amount of ST+Interest, penalties u/s 76,77 &78. As we had paid full tax + interest before issuance of show cause notice. In my view my client is not liable for payment of ST+interest, I want your views and some case laws for preparation of reply to departments show cause notice. Reply By balasubramanian n: The Reply: 1.Penalty under Section 78 is leviab....
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....le even in cases where the TAX and interest were paid before issue of SCN if any one of the ingedients spelt out in Section 78 was present with intent to evase tax. This depends on the wordings of the SCM. 2.Penalty under Section 76 and 78 are mutually exclusive ; This has been the decision of the Tribunal in number of cases. Now this has been made part of the ACT. 3.You can ask for waiver of pena....
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....lties if reasonable cause can be shown to the satifaction of the Adjudicating authority as provided in Section 80 of the Finance Act 1994<br> Discussion Forum - Knowledge Sharing ....