2014 (1) TMI 209

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....nths during the above mentioned period. Further interest for delayed payment was not paid before issue of SCN. The department issued show cause notice dt. 10-06-2010 for recovery of interest of Rs.97,423/- as per section 75 and also for imposing penalty under section 76. On receipt of the SCN, the appellant contested the period of delay and the quantum of interest. They contended before the original authority that service tax amounts were deposited by cheques on 05-08-08, 06-08-08, 06-12-08 and 05-01-09 and the interest payable worked out only to Rs.96,663/-. This interest was also paid by the appellant by challan dt. 22-07-2010. Thereafter, the case was adjudicated by Order-in-Original dt. 15-07-2011. On adjudication, the demand for intere....

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....hat was the reason for the delay in remitting tax. Considering this aspect, the penalty should be waived in exercise of powers under section 80 of the Finance Act, 1994. 4. Opposing the prayer, Ld. AR for Revenue submits that section 73 (3) is only to the effect that no notice shall be served for demanding tax paid and there is no prohibition in issuing show cause notice for imposing penalty under section 76. He submits that Tribunal in the case of CST Bangalore Vs Gowri Computers (P) Ltd. 2012 (25) STR 380 (Tri.-Bang.) has held that penalty under section 76 would apply in such cases and Tribunal did not waive penalty and therefore penalty imposed under section 76 in this case is proper and sustainable. 5. Ld. AR for Revenue further s....