TMI Blog2010 (4) TMI 459X X X X Extracts X X X X X X X X Extracts X X X X ..... treat date of cheque as dte of presentation of cheque thus interest has been correctlt demanded. But penalty u/s 76 set aside. - ST/370 OF 2009 - A/422 & S/376/WZB/(AHD.) OF 2010 - Dated:- 30-4-2010 - B.S.V. MURTHY, TECHNICAL MEMBER S.J. Vyas for the Appellant. Rajendra Nagar for the Respondent. ORDER 1. The appellant is a Company providing services under the category of Maintenance or Repair Services, Cargo Handling Services and Erection, Commissioning and Installation Service. During the period from October, 2006 to March, 2007, there was delay in payment of service tax on the part of the appellant. Service tax payable for the months of October, 2006 to December, 2006 were paid only on 1-3-2007, the service tax paya ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nal vide U.B. Engineering Ltd. v. CCE [2009] 23 STT 194 (Ahd. - CESTAT) had held that ' where service tax and interest had been paid, there .was no need to issue show-cause notice at all, and it was held that no penalty under section 76 was imposable. He also relied upon the Circular issued by CBEC on 3-10-2007 vide No. 137/167/2006-CX-4, dated 3-10-2007 in support of his contention that in this case, the appellant is required to pay only differential amount of interest and no penalty is imposable. Learned DR on the other hand relied upon the Circular No. 86/ 2003-Cus., dated 3-10-2003 and submitted that show-cause notice was correctly issued and in this case interest is payable from the date of realization of cheque and not from the date ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sentation of cheque to the bank designated by the Central Board of Excise and Customs for this purpose shall be deemed to be the date on which service tax has been paid subject to realization of that cheque" 7. According to the rule, date of presentation of cheque has to be taken as the date on which the service tax has been paid. This is further supported by the Circular cited by the learned SDR himself [86/2003-Cus., dated 3-10-2003], where again the provisions of rule 6(2A) of Service Tax Rules, 1994 has virtually been repeated and in fact, in the Circular a portion of the subject reads "date of presentation of the cheque is date of payment". Further learned advocate also brought to my notice to Para 3.3 of CBEC Manual. This Para also ..... X X X X Extracts X X X X X X X X Extracts X X X X
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