2018 (8) TMI 1402 – CESTAT NEW DELHI – TMI – Waiver of penalty imposed u/s 77 and 78 of the Finance Act, 1994 – service tax paid on being pointed out before issuance of SCN – invocation of Section 73(3) of Finance Act – Held that:- In the case of Gupta Coal Field & Washeries Ltd. vs. CST, Nagpur [2013 (3) TMI 224 – CESTAT, MUMBAI] the Tribunal held that if assessee pays service tax alongwith interest on pointing out by the Revenue and intimated to the Department, in that circumstances, no show cause notice is required to be issued.
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The SCN was not required to be issued to the appellant, therefore, no penalty can be imposed on the appellant – appeal allowed – decided in favor of appellant. – S.T. Appeal No.51181 of 2018-SM – A/52750/2
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of the Finance Act, 1994. On 14.10.2017, a show cause notice was issued to the appellant for appropriation of the amount already paid and to impose various penalties. The adjudicating authority by invoking provisions of Section 73(3) of the Act dropped the proceedings for imposition of penalty. Against that order, the Revenue appealed before the Commissioner (Appeals) and the Commissioner (Appeals) imposed the penalty on the appellant. Aggrieved by the order, the appellant is before me. 3. Heard the parties and considered the submissions. 4. In this case, the appellant is disputing only imposition of penalties imposed on them by way of impugned order. As per provisions of Section 73(3) of the Act, if assessee pays whole of the service tax a
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y is imposable. 6. I have gone through the said decision. The fact of the said case are totally irrelevant. In the said case, the appellant paid duty on pointing out by the Revenue but no interest was paid by the appellant. Moreover, the said case pertains to Central Excise Act which does not have provision parameteria to Section 73(3) of the Act. Therefore, the said decision of Hon ble Karnataka High Court is of no help. Further, I find that in the case of Gupta Coal Field & Washeries Ltd. vs. CST, Nagpur – 2013 (29) STR 166 (Tri. Mum) the Tribunal held that if assessee pays service tax alongwith interest on pointing out by the Revenue and intimated to the Department, in that circumstances, no show cause notice is required to be issued
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