TaxTMI 
TaxTMI 
2017 (12) TMI 1379
X X X X Extracts X X X X
X X X X Extracts X X X X
.... cause notices to demand and recover of service tax mainly under the categories of construction of residential complex service and commercial and industrial construction service. After due examination, the original authority adjudicated the case and confirmed part of the Service Tax liability. He imposed penalty of Rs. 5,000/- under Section 77 and no penalties were imposed under Section 76 and 78. He held that the case is fit for closure for the amount already paid in terms of Section 73 (3) of the Finance Act, 1994. The proceedings initiated in the 2nd show cause notice were dropped. 3. The Revenue is aggrieved only by the findings with reference to 2 issues:- (a) Service Tax liability of Rs. 30,50,811/- should have been confirmed by the....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... accordingly, the case should have been closed even without adjudication by virtue of provisions of Section 73(3). However, keeping in view these facts the original authority arrived at a similar finding in the present proceedings. There is no infirmity in the decision of the original authority in not imposing the penalties under Section 76 and 78. He further submitted that penalties under Section 77 were also not liable. However, they have not preferred any appeal on this considering the amount is only Rs. 5,000/-. 6. Regarding Service Tax liability on the building used for educational institutions, the ld. Consultant submitted that it is the nature and use of the building which is relevant for tax liability and not the commercial earning....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... to be imposed on the notice for the alleged Acts of omission & commission detailed in the SCN. To this I find in the present situation, where the notice has deposited the whole amount of service tax payable for the impugned period alongwith interest for delayed payment during the course of investigation itself and that too before issue of impugned show cause notice question of imposing proposed penalties do not arise in term of provision of Section 73(3) of the Act. Further, the Hon'ble Apex Court in the case of M/s. Rashtriya Ispat Nigam has held that once whole amount of duty is deposited before issue of show cause notice, no penalty is imposable on the party." 10. In principle, we are in agreement with the general conclusion of the imp....