SERVICE CARE Vs. COMMISSIONER OF SERVICE TAX

JUDGEMENT

(1.) THE contention of the assessee is that since they paid service tax together with interest prior to the issue of show -cause notice all proceedings including imposition of penalty stood concluded, in the light of the language of Section 73(3) of the Finance Act, 1994 and clarification of the above position by CBEC's Circular dated 3 -10 -2007. Reliance has also been placed by the assessee on the Tribunal's decision in U.B. Engineering Ltd. v. CCE, Rajkot : 2009 (16) STR. 457.

(2.) I have heard both sides and find that the assessees are correct in their contention in the light of the Board's circular as well as the decision cited supra. This is not a case where the Revenue has invoked the proviso to Section 73(1) in order to contend that penalty is imposable - in other words, this is a case falling within the normal period of limitation. Therefore, question of any penalty does not arise. I, therefore, set aside the impugned order and allow the appeal.