2014 (8) TMI 27

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....ned in the year 2007-08 and audit of the records was conducted in April, 2011. Thereafter show-cause notice was issued proposing recovery of the credit wrongly availed with interest and imposition of penalty. In the meantime, appellants paid service tax and interest. In the appeal, appellant is not contesting the liability of service tax and interest, but only contesting the imposition of penalty. 2. The ld. Counsel on behalf of the appellants submits that in this case the appellants had paid service tax availed by them with interest on 6-9-2011 and on finding that there was some mistake in calculating the interest; they paid the balance amount in November, 2011. It is also his submission that service tax liability with interest had....

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.... for and appellant's case is covered by Sec. 73 of the Finance Act, 1994. 3. The ld. AR would submit that the appellants did not pay full amount before the issue of show-cause notice. The show-cause notice was issued on 2-9-2011 and therefore, penalty has to be upheld. 4. The ld. Counsel submits that the show-cause notice was not received by them before making the payment. 5. I have considered the submissions of both sides. On going through the records and considering the submissions, I find that audit was conducted in April, 2011; appellant paid Cenvat credit taken with interest on 6-9-2011; show-cause notice is dated 2-9-2011; show-cause notice was signed on 4-9-2011. Under these circumstances, claim of the ld. Cou....