COMMISSIONER OF SERVICE TAX, BANGALORE Vs. PRASAD BIDAPPA

JUDGEMENT

(1.) This appeal is preferred by the assessee challenging the order passed by the Tribunal as well as the Appellate Commissioner who have held that the assessee is not liable to pay any penalty under Sec, 76 of the Finance Act, 1994 and therefore, set aside the order passed by the lower authorities imposing penalty. Facts are not in dispute. The assessee has paid both the service tax and interest for delayed payments before issue of show cause notice under the Act. Sub-section (3) of Section 73 of the Finance Act, 1994 categorically states, after the payment of service tax and interest is made and the said information is furnished to the authorities, then the authorities shall not serve any notice under sub-section (1) in respect of the amount so paid. Therefore, authorities have no authority to initiate proceedings for recovery of penalty under Sec. 76 of the Act. In that view of the matter, we do not see any merit in this appeal. The appeal is dismissed.