TMI Blog2017 (6) TMI 768X X X X Extracts X X X X X X X X Extracts X X X X ..... ore issuance of SCN, under sub section 1 of Section 73 of FA 1994, no SCN be issued - Further, on careful reading of Section 73(3) of the FA, 1994, it is seen that it only talks about discharge of service tax liability by assessee before issuance of SCN - penalties unjustified - appeal allowed - decided in favor of appellant. - ST/22451/2014 - Final Order No. 30688/2017 - Dated:- 31-5-2017 - M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se notice to appellants demanding service tax for the period 2006-07 to 2010-11. The said show cause notice also sought interest and sought to impose penalties. The appellant contested the show cause notice for non imposition of penalty, as they had already discharged service tax liability prior to issue of show cause notice and interest liability after issuing show cause notice and the provision ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt has discharged some portion of service tax liability before issuance of show cause notice is incorrect. It is his submission that the interest has been paid after issue of show cause notice. The Ld. Counsel draws my attention to the provisions of Section 73(3) of Finance Act, 1994. 5. The Ld. Departmental representative while reiterating the findings of the first appellate authority submit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ious challans in March 2011 and show cause notice was issued on 18.07.2011 for demand of service tax of an amount less than the amount paid. The said claim seems to be correct as there is no record by the first appellate authority that payment of ₹ 15,74,731/was not made in the month of March 2011, prior to the issuance of show cause notice. Based on the factual matrix, I find that Section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Solutions Ltd [2012(26)S.T.R 3(Kar) of Hon'ble High Court of Karnataka, for the proposition, show cause notice should have been issued. 7. In view of foregoing, I hold that appellant has made out a case for non imposition of penalties under Sections 77 78 as they have discharged entire service tax before issuance of show cause notice and also discharged major portion of interest liability ..... X X X X Extracts X X X X X X X X Extracts X X X X
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