2014 (1) TMI 1610

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....department and there was delay in payment off and on during the period from april 2007 to March 2010. Consequently proceedings were initiated fro imposition of penalty under Section 76 of Finance Act, 1994. Since the appellant had paid the entire amount of service tax due with interest either on pointing out by the department or on their own by filing the returns, the lower authorities have taken the view that penalty under Section 76 is imposable and hence the appeal. 2. Moving the stay application, the learned counsel for the appellants submitted that in this case the entire amount of service tax with interest was paid before issue of show-cause notice. Once such payment is made, as per the provisions of Section 73(3) of Finance Act, 1....

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....ounts of the assessee and reconciliation of the ST-3 returns with P & L accounts, it was noticed that the assessee has received an amount of Rs.10 ,66,938 /- from M/s. Bharati Airtel Ltd. during the year 2006-07 on which service tax was not paid. The service tax payable on above amount works out to Rs.1 ,16,352 /-. On being pointed out the assessee have agreed to the objection and paid Rs.1 ,16,352 /- along with applicable interest of Rs.41,429 /- vide GAR-7 Challan dt. 26.10.09.    3. During the course of verification of ST-3 returns for the period from April 2007 to March 2010 it was noticed that the assessee has not paid an amount of Rs.1 ,01,92,150 /- towards service tax, an amount of Rs.2,47,513 /- towards Education Cess a....

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....e appellant was informed by the department, as per the provisions of Section 73(3), the question of imposition of penalty under Section 76 of Finance Act, 1994 would not arise. Therefore, it is necessary to consider whether the amounts which became due in the service tax returns were actually reflected and was not paid and if the same was paid without any intervention of the department before issue of show-cause notice, the matter has to be treated as settled in terms of provisions of Section 73(3) of Finance Act, 1994. The instructions issued by the Board in 2007 as well as the precedent decisions of various judicial forum supports this view. Therefore this aspect has to be reconsidered and adjudicated upon by the original authority. 4.....