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TMI Blog2013 (3) TMI 421X X X X Extracts X X X X X X X X Extracts X X X X ..... tion of the records it was found that the income reflected in the ST-3 return was less than the amounts received and in the statement given by the appellant's director, it was stated that there was short payment of service tax from September 2004 but the exact amount was not available in view of the fact that the amount received in the months September 2004 onwards included the amounts due for the period prior to 10-9-04 also in respect of which appellant was not liable to pay service tax. However, the appellant deposited an amount of Rs. 10 lakhs towards liability of service tax, interest and penalties immediately without waiting for show cause notice. Thereafter another statement was recorded from the director on 21-10-05 and at that time ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e appellant had reflected the correct amounts received for providing services or not and whether audit party had made any observation. As regards the liability, it was submitted that the actual liability would come down by Rs. 1,33,633/-. However, the learned Chartered Accountant fairly admitted that the appellant is a sick company and is no longer operational and they do not have the necessary details to back up the claim regarding reduction of service tax liability by Rs. 1,33,633/-. This admission was made when an offer was made to remand the issue back to the original adjudicating authority for fresh verification. Under these circumstances, the only option available is to look at the worksheet attached to the show cause notice. I find c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bstantial higher amount towards the liability even without waiting for show cause notice. Therefore the assessee is entitled to this relief in this case also. Accordingly penalties under Sections 76 & 77 of Finance Act, 1994 are set aside. 4. As regards penalty under Section 78 of Finance Act, 1994, original adjudicating authority had made an offer that if the amount of penalty is paid within thirty days of the communication of the order, penalty shall get reduced to 25%. The observation made with regard to the deposit made before issue of show cause notice and after issue of show cause notice would be applicable in respect of penalty under Section 78 of Finance Act, 1994 also. Accordingly since the amount deposited by the appellant in 200 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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