2019 (3) TMI 119 – CESTAT CHENNAI – TMI – Demand of duty – Penalty – Held that: – it is clear that the appellant has discharged the service tax along with interest before issuance of show cause notice. The same has been appropriated in the adjudication order passed by the adjudicating authority. Sub-section (3) of section 73 says that whenever service tax is paid up along with interest, before issuance of show cause notice, no penalties or in particular no show cause notice has to be issued – Appeal allowed with consequential relief. – Appeal No. ST/599/2012 – Final Order No. 40393/2019 – Dated:- 28-2-2019 – Ms. Sulekha Beevi C.S., Member (Judicial) And Shri Madhu Mohan Damodhar, Member (Technical) Ms. Amrutha Arvind, Advocate for the Appellant Shri B. Balamurugan, AC (AR) for the Respondent ORDER Per Bench Brief facts are that the appellants are engaged in providing the services of Site Formation and Clearance, Excavation and Earthmoving and Demolition Services. On scrutiny of record
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However, they have discharged the service tax along with interest immediately on being pointed out by the department. That such payment along with interest was much before issuance of the show cause notice. She relied upon sub-section (3) of section73 of Finance Act, 1994 to argue that no penalty can be imposed when the service tax is discharged along with interest before issuance of show cause notice as pointed out by officers. To support this argument, she took assistance of the decision of the Hon ble High Court of Karnataka in the case of Commissioner of Central Excise, Bangalore Vs. Adecco Flexione Workforce Solutions Ltd. – 2012 (26) STR 3 (Kar.). It was also submitted by her that apart from mere allegation that there is suppression of facts with intention to evade payment of service tax, department has not been able to point out any positive act on the part of the appellant indulging in suppression of facts. There was no intention to evade payment of service tax which is very m
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t is clear that the appellant has discharged the service tax along with interest before issuance of show cause notice. The same has been appropriated in the adjudication order passed by the adjudicating authority. Sub-section (3) of section 73 says that whenever service tax is paid up along with interest, before issuance of show cause notice, no penalties or in particular no show cause notice has to be issued. The intent of this section is to reduce litigation and also to encourage the appellant to pay up the tax as and when pointed out by the department or coming to notice of the assessee. Thus, it is only intended for voluntary and easy compliance on the part of the assessee. The decision of the Hon ble High Court of Karnataka in the case of Commissioner of Central Excise, Bangalore Vs. Adecco Flexione Workforce Solutions Ltd. (supra) has held that when the assessee has paid up the demand of service tax along with interest no show cause notice and in particular no penalty can be impo
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