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2017 (5) TMI 1200 - AT - Service TaxSEZ unit - Recovery of interest - adjustment with Refund claim - refund claim included the amount paid by assessee of duty and interest for delayed payment of duty - General Insurance Business - Banking and Financial Services - Chartered Accountant Services, etc. - N/N. 9/2009 as amended by N/N. 15/2009 - whether the Department can recover the interest amount of ₹ 30,05,219/- u/s 87 of the FA, 1994 without issuance of a SCN and without adjudication proceedings to determine the amount due and payable by the appellant? Held that: - after introduction of sub-Section (1B) to Section 73, in case the appellant fails to pay the service tax or interest thereon, under the self assessment method, the amount can be recovered without service of notice. The said Section has come into force only w.e.f. 14.05.2015 - the period in the present case being prior to 14.05.2015 it was incumbent upon the Department to issue a SCN and initiate proceedings for the determination of the amount due and payable by the appellant before initiating recovery u/s 87 of FA, 1994. The Department cannot proceed to recover the interest u/s 87 without issuing a SCN and determination of the amount due and payable by the appellant as provided under sub-Section (1) of Section 73 of the FA, 1994 - appeal allowed - decided in favor of appellant.
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