TMI Blog2016 (5) TMI 943X X X X Extracts X X X X X X X X Extracts X X X X ..... ot paid to the Government, the proceedings in this case apparently covered the amount in terms of sub-Section (2) of Section 73A not sub-Section (1) of the said section. Even comparing with the similar provisions in Central Excise Act, 1994 it is apparent from the wordings of Section 73B that amount covered under Sub-Section (2) of Section 73A is not covered by Section 73B. Even otherwise the fact remains that proceedings under sub-Section (3) and determination there upon under sub-Section (4) is not warranted in the present case as the amount has already been remitted to the Government. Therefore, the impugned order in so far as it relates to interest demand is not sustainable. Imposition of penalty - section 77(2) of the Finance Act, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of ₹ 10,000/- under Section 77 (2) of the Finance Act, 1994. On appeal, the Commissioner (Appeals) vide his impugned order upheld the original order. However, he reduced the penalty to ₹ 5,000/- in view of the statutory limit prescribed during the relevant time under Section 77 (2) of the Act. Aggrieved by this, the appellant preferred this appeal. 2. The learned Counsel for the appellant submitted mainly on the following grounds :- (a) Section 73B provides for paying of interest on amount which has been collected in excess of the tax assessed or determined and paid for any taxable service from the recipient of such service as determined under sub-Section (4) of Section 73A. Their case is covered under sub-Section (2) of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ellant collected service tax from the transporters when no service tax is payable to the Government in view of a specific exemption provided. They have not remitted the said amount to the Government. The irregularity was pointed out by the Department in April 2012 and the appellant paid the amount to the Government account in May, 2012. After almost 16 months a notice was issued to the appellant for appropriation of already paid amount; to recover interest and to impose penalty. On this factual background, it is seen that proceedings against the appellant under sub-Section (3) of Section 73A itself is not required. The said sub-Section clearly states that any amount required to be paid under sub-Section (1) or sub-Section (2) under the same ..... X X X X Extracts X X X X X X X X Extracts X X X X
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