LAWS(CE)-2010-7-32

AMIRAS ENTERPRISES Vs. COMMISSIONER OF CENTRAL EXCISE, RAJKOT

Decided On July 23, 2010
Amiras Enterprises Appellant
V/S
Commissioner of Central Excise, Rajkot Respondents

JUDGEMENT

(1.) THE appellants are engaged in providing manpower recruitment service. The service tax for the period from October 2006 to March 2007 was paid on 13 -7 -07 with interest and for the period from April 2007 to September 2007 the service tax was paid on 18 -10 -07 with interest. A show cause notice was issued to the appellants initiating penal proceedings on 11 -6 -08 and penalty under Section 76 amounting to Rs. 71,307/ - has been imposed.

(2.) THE learned C.A. submits that as per the provisions of Section 73(3) of Finance Act, 1994, when the assessee has paid the service tax with interest before issue of show cause notice, no show cause notice shall be issued by the central excise authorities. Therefore he submits that the proceedings initiated against the appellants should not have been initiated at all in the first place. Further he also relies upon the decisions of the Tribunal in similar circumstances, wherein the Tribunal took a view that penalty imposed under Section 76 cannot be sustained and held that assessee met the requirement of Section 73(3) of the Finance Act, 1994. The cases cited by him are :

(3.) HE also relies upon the circular issued by the Board on 3 -10 -07 stating that where the service tax and interest have been deposited further proceedings need not be taken up. He also submitted that the appellant is a proprietary concern and they provide manpower service to only one company and the nearest bank to the appellant is 60 k.m. away and he requests taking all these factors into consideration a lenient view under Section 80 of Finance Act, 1994 is also called for.