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2016 (5) TMI 943 - AT - Service TaxRecovery of interest - Section 73B of the Finance Act, 1994 - Collected Service tax from the transporters when no service tax was payble and not deposited to the Government - later amount was deposited with the government - Held that:- a close reading of the section 73B indicates that the situation as covered under sub-Section (1) of Section 73A and determination of liability under sub-Section (4) of the said section were only covered by the interest provision. Apart from the fact that no proceeding required to have been initiated against the appellant for recovery of amount not paid to the Government, the proceedings in this case apparently covered the amount in terms of sub-Section (2) of Section 73A not sub-Section (1) of the said section. Even comparing with the similar provisions in Central Excise Act, 1994 it is apparent from the wordings of Section 73B that amount covered under Sub-Section (2) of Section 73A is not covered by Section 73B. Even otherwise the fact remains that proceedings under sub-Section (3) and determination there upon under sub-Section (4) is not warranted in the present case as the amount has already been remitted to the Government. Therefore, the impugned order in so far as it relates to interest demand is not sustainable. Imposition of penalty - section 77(2) of the Finance Act, 1994 - Held that:- the appellant have not remitted the amount collected representing service tax forthwith to the credit of Central Government. The payment was made only after follow up by the Department and as such, the penalty in such situation is justifiable. Accordingly, the payment of amount representing service tax and the penalty are upheld. - Appeal disposed of
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