TMI Blog2011 (7) TMI 127X X X X Extracts X X X X X X X X Extracts X X X X ..... as short paid. Because of this reason, the provisions of Section 73 (3) cannot be applied since entire amount with interest has not been paid and if the entire amount has not been paid, proceedings can be initiated according to the law - Once delay in payment is established and show cause notice has been issued, penalty under Section 76 as per the amount prescribed in the Section, have to be impos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ; M/s. Ashish Anand Company (respondents) was providing maintenance and repair services. On the ground that respondents had paid service tax due for the quarter ending December 2006 and March 2007 late and did not also file returns in time, proceedings were initiated. Lower authorities imposed penalty of Rs. 1,30,860/- under Section 76 and Section 77 of Finance Act, 1994. The Commissioner r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t has to be imposed as per the provisions of law. In this case, service tax with interest was paid by the respondents even before issue of show cause notice but unfortunately while paying the amount, the interest of Rs. 118/- was short paid. Because of this reason, the provisions of Section 73 (3) cannot be applied since entire amount with interest has not been paid and if the entire amount has no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nts have pleaded the invocation of provisions of Section 80 of Finance Act, 1994. Under these circumstances, it would not be appropriate to invoke the provisions of Section 80 at this stage. 3. In view of the above discussion, in obedience of direction of the Hon ble Gujarat High Court, penalty under Section 76 imposed by the original adjudicating authority is restored and penalty is enhanced ..... X X X X Extracts X X X X X X X X Extracts X X X X
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