TMI Blog2014 (7) TMI 34X X X X Extracts X X X X X X X X Extracts X X X X ..... the case is covered under Section 73 (3) of the Finance Act, 1994, the case merits for waiver of penalty. However, as regards the demand of interest, the adjudicating authority has rightly held that they have paid interest only on the service tax paid in cash but not on the tax amount adjusted through cenvat account. Therefore, interest liability calculated on the entire amount of service tax is payable - Differential amount of interest confirmed however, penalty is set aside - Decided partly in favour of assessee. - ST/390/2010 - FINAL ORDER No.40349/2014 - Dated:- 20-6-2014 - R Periasami , J. For the Appellant : Shri S Krishnanandh , Adv . For the Respondent : Shri Parmod Kumar, JC (AR) PER : R Periasami 1. The ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... service tax due for the relevant period was delayed and the same was remitted during August'08 well before receipt of SCN. The learned advocate therefore pleaded that their case is fully covered under Section 73(3) of the Act and in this context, he relied upon Board's circular F.No.137/167/2006-CX-4 dt. 3.10.2007. He also relied upon the Hon'ble Tribunal's decision in the case of CST New Delhi Vs Independent News Services P. Ltd. - 2011 (23) S.T.R. 23 (Tri.-Del.) . Ld. Advocate also argued that the appellant have correctly calculated and paid the interest as per the worksheet. 3. Ld. Authorized Representative on behalf of Revenue argued that the adjudicating authority has rightly held that delayed payment of service tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the Circular relied upon by both the sides deals both with Section 73(1A) as well as 73(3). The Circular is reproduced below : - Section 73(1A) reads as under : - Section 73(1A) of the Finance Act, 1994 provides for conclusion of adjudication proceeding in the cases of willful suppression/fraud/collusion if the taxpayer pays service tax liability along with interest and a penalty equal to 25% of service tax amount, within a period of one month from the date of issue of SCNs. Similarly, section 73(3) provides conclusion of adjudication proceedings in other cases on payment of service tax and interest. 2. A question has been raised as to whether the conclusion of proceedings in such cases is limited to the actio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A) or Section 73(3) as the case may be, are complied with it results in conclusion of the proceedings. This is a case under Section 73(3). Section 73(3) does not envisage any penalty. It is not open for the Revenue to say that penalty as applicable under Section 73(1A) is to be paid when benefit under Section 73(3) is claimed. After making provision in law, the Revenue should respect the provision made rather than feel aggrieved that the provision is too lenient. 11. In the circumstance, we do not see any merit in the appeal filed by the Revenue and the same is dismissed. The similar issue has been decided by this Bench in favour of assessees in the following decisions : - (1) Shivas industrial Caterers India Pvt. Ltd. Vs ..... X X X X Extracts X X X X X X X X Extracts X X X X
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