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TMI Blog2011 (11) TMI 517X X X X Extracts X X X X X X X X Extracts X X X X ..... ervice tax from the Government account of that department to Government account "0044" for receiving service tax. Even after the respondents were constituted as a company, they continued to pay service tax on services provided by BSNL through such mechanism of book transfer. According to Revenue, that was not a proper method of paying service tax as prescribed under the Service Tax Rules and therefore, show cause notice was issued asking them why service tax of Rs. 4,14,79,640/- should not be recovered from them under Section 73(1) of the Finance Act, 1994 along with appropriate interest and why penalties under Sections 76, 77 and 78 of the Act should not be imposed on them. On adjudication of the show cause notice, the adjudicating authori ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... through book adjustment through their headquarters office at Lucknow. Firstly the Adjudicating Authority prior to raising the demand, must have confirmed from the Department concerned as to whether the said amount has been deposited by the Lucknow office of the appellants or not and if yes, the same has been treated as payment against service tax or not. And once, if the service tax has been deposited by any assesse, it cannot be demanded against. So, the Adjudicating Authority is required to do the needful and then pass appropriate order. In my opinion, the case needs to be re-examined on the points observed in the foregoing paras and then the Adjudicating Authority is required to pass a fresh speaking order. Accordingly the appeal is d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ved or not, but only harping on the irregular method of payment. We also note Office Memorandum dated 3-2-2003 issued by C.B.E. & C. and relied upon by Revenue while filing the appeal directs as "cases of non-compliance may be intimated to this office". So if there is non-compliance by BSNL, the proper course was to intimate C.B.E. & C. and not to demand the tax again with interest and to impose penalties. The Counsel for the BSNL submits that they are willing to produce documents showing payment of impugned service tax into the designated account though such payment was not through TR-6 challans. The Commissioner (Appeals) has only accepted this plea and ordered verification. Therefore, we do not find any reason to interfere with the order ..... X X X X Extracts X X X X X X X X Extracts X X X X
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