TaxTMI 
TaxTMI 
2026 (5) TMI 868
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....providing Construction of Residential Complex Services, Works Contract Services, Interior Decoration Designer Services etc; Since the respondent had not discharged service tax on various services rendered by them show-cause notice was issued demanding service tax along with interest also recommending imposition of penalty. The Commissioner in the impugned order observes that the respondent accepting their liability paid the entire service tax due and the interest prior to the issue of show-cause notice which was acknowledged by the department in the show-cause notice itself. The Commissioner confirms the service tax demand for the disputed period and appropriates the service tax amount paid along with interest but refrains from imposing pen....
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....sus Adecco Flexicone Workforce Solutions Ltd. 2012 (26) STR 3 (Kar) dated 08.09.2011. 4. Heard both sides. The Commissioner in the impugned order at para 16 and 17 observed as follows:- "16. I now proceed to discuss the claim made by the assessee that they have voluntarily paid the service tax not paid / short paid under Section 73 (3) of the Act. Here I proceed to extract some of the submissions made by the assessee on this subject. In accordance with the directions issued by the audit party in terms of sub section (3) of Section 73 of the Act we paid the amount not / short paid. Subsequently we paid the interest payable on the above amount also. These facts were duty reported to the Central Excise authorities. ....
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....Officer before the service of notice on him under sub section (1) in respect of such service tax, and inform the Central Excise Officer of such payment in writing, who, on receipt of such information shall not serve any notice under sub section (1) in respect of the amount so paid. In this case, the facts are clear, as already mentioned supra. Audit Party noticed certain discrepancies from the books of accounts maintained by the assessee, which were brought to the notice of the assessee. The assessee, on their part, accepted the mistakes, agreed to pay the service tax short paid/not paid, and honoured the same within a few months. Interest at appropriate rates was also discharged by the assessee. In the "summary of audit results" c....
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....paid the amount with interest without any protest. Once the same has been fulfilled, the onus is on the Department to prove that the assessee has suppressed material facts with intent to evade payment of service tax. As already discussed and concluded, the allegation in the show cause notice to that effect is unsustainable. Hence the claim of the assessee that they have paid service tax under Section 73 (3) is only reasonable and tenable. Further, as rightly pointed out by the assessee, both in their letter to the jurisdictional Range Officer as well as in their reply to the Show Cause Notice, Section 73 (4 A) of the Act, which proposes imposition of penalty @ 1% of the tax for each month of the default to a maximum of 25%, was introduced w....