TMI Blog2010 (5) TMI 90X X X X Extracts X X X X X X X X Extracts X X X X ..... be treated as concluded. Learned DR submitted that in this case the delay occurred in every month over a period of two years and the appellants paid the differential interest only after it was pointed out by the department and therefore penalty has been rightly imposed. – Held that - Section 73 of Finance Act, 1994 provides that when an assessee pays service tax and interest due before issue of sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t was required to pay another amount of Rs.1,011/-. This was also paid as soon as the same was pointed out. However, subsequently show cause notice was issued and penalty under Section 76 and 77 of Finance Act, 1994 have been imposed. The learned C.A. relies upon the Board's circular issued vide F.No.137/167/2006-CX-4, dated 03.10.07 to submit that where service tax and interest is paid suo-moto b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , show cause notice shall not be issued. Therefore in this case show cause notice itself should not have been issued in the first place. In view of the Board's circular and also Tribunal's precedent decision cited by the learned C.A. I find that the penalties imposed on the appellant cannot be sustained. Accordingly appeal is allowed. (Dictated Pronounced in Court) (B.S.V. Murthy) Memb ..... X X X X Extracts X X X X X X X X Extracts X X X X
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