2016 (6) TMI 159

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....ch, according to the appellant, was paid before issue of SCN No.73/2011 dt. 28.3.2011. On a perusal of the SCN, it is in fact correct that the appellant has discharged the tax amount along with interest before issuance of SCN. The present appeal pertains to imposition of penalty under Section 78 of the Finance Act. The contention of the appellant is that the penalty is not payable as the disputed tax amounts have been paid along with interest. This submission of the appellant did not find merit with the adjudicating and appellate authorities resulting in the filing of the present appeal. 2. Heard both sides in the matter. The appellant was represented by Shri M. Karthikeyan, Advocate and the Revenue was represented by Shri Veerabhadra Re....

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....along with payment of interest payments as per their worksheet available on page 53, 54 of the paper book; though they had paid the entire service tax demand or credit denied for the period from April 2008 to December 2008 along with applicable interest on 22.01.2009 and 18.05.2009, they have been issued with SCN on 28.3.2011 invoking extended period. In view of the above facts, the counsel prayed that proceedings ought not to have been initiated and further stressed on the point that extended period is not invocable in their case. 4. Ld.A.R Shri Veerabhadra Reddy, JC (AR) would contend that under the self-assessment scheme, it is the onus of the tax payer to discharge the liability without any flaw and it is the responsibility to discha....

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....r the removal of doubts, it is hereby declared that the interest under Section 75 shall be payable on the amount paid by the person under this sub-section and also on the amount of short payment of service tax or erroneously refunded service tax, if any, as may be determined by the Central Excise officer, but for this sub-section. [Explanation 2]. - For the removal of doubts, it is hereby declared that no penalty under any of the provisions of this /Act or the Rules made thereunder shall be imposed in respect of payment of service-tax under this sub-section and interest thereon." From the above, it is clear that if the tax payable stands paid based on assessees own ascertainment or on the basis of Central Excise Officer, before....