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2010 (2) TMI 137 - AT - Service TaxMaintenance or Repair Service - during the period from October, 2006 to March, 2007 they committed default of service tax in respect of the transactions for the said period. Later on, they paid the tax with interest on 06/10/2007. The service tax return was filed on 22/01/2008. In a show-cause notice dated 05/06/2008, the department demanded an amount of Rs. 28/- as differential interest on service tax under Section 75 of the Finance Act, 1994 and also proposed to impose penalty of Rs. 87,003/- under Section 76 of the Act. Held that: This provision of section 73(3) restrains the department from issuing any show-cause notice for demand of service tax from an assessee where they have already self-determined and paid up the tax under intimation to the department. This provision of law in no manner restrains the authorities from taking penal action against such an assessee for default / delay of payment of service tax. This is what happened in the instant case. The extent of penalty which could be imposed on an assessee in appropriate circumstances like those obtaining in the present case, under Section 76, is Rs. 200/- per day or @ 2% of the amount of tax per month, whichever is higher. – Decided against the assessee
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