M/S. ELECTRO WORLD Vs. CCE, CHANDIGARH

JUDGEMENT

(1.) LEARNED Consultant submits that if short fall in payment of service tax is paid mitigating factor of sub -section (3) of Section 73 takes care of that case. The present appellant having paid short fall by 24th April 2006, there should not have been issuance of show cause notice for the said short fall on 28.11.2007. The action of the learned adjudicating authority, not being in consonance with the provision contained in Section 73(3) of Finance Act, 1994, this appellant had been directed to pay penalty under Section 76 of the Finance Act, 1994. In short, preliminary argument is that when no show cause notice was to be issued the question of penalty does not arise since adjudication is not intended by under Section 73(3) of the Finance Act, 1994.

(2.) LEARNED D.R. supports the authority below.

(3.) THERE is no dispute that the case is made for realization of short fall and only default period penalty has been called for under Section 76 of Finance Act, 1994. Statutory mandate being to relieve an assessee falling under Section 73(3) of Finance Act, 1994 from litigation without issuance of show cause notice, learned counsels averment is correct proposition of law. Therefore, he succeeds in appeal without facing any penal consequence under Section 76 of the Act. Consequently, appeal is allowed.