CESTAT BANGALORE

 

M/s ESSKAY SHIPPING (P) LTD VERSUS COMMISSIONER OF CENTRAL EXCISE, VISAKHAPATNAM

 

 

No. - ST/St/1849/2012, ST/2537/2012

Dated - January 29, 2013

 

P G Chacko And B S V Murthy, JJ.
For the Appellant : Mr V Seetha Ramaiah, Adv.
For the Respondent : Mr R K Singla, AR.
Per: P G Chacko:
This application filed by the appellant seeks waiver and stay in respect of the penalty imposed on them under Section 76 of the Finance Act 1994. After a perusal of the records and hearing both sides, we are of the view that the appeal itself requires to be finally disposed of at this stage. Accordingly, after dispensing with predeposit, we take up the appeal
2. This appeal is directed against the aforesaid penalty imposed by the Commissioner in adjudication of a show-cause notice dated 7/2/2012. The appellant paid service tax with interest thereon some time before issue of the show-cause notice. These payments were for the period from October 2010 to March 2011. The show-cause notice proposed a penalty under Section 76 of the Act and the adjudicating authority imposed it on the assessee. From the submissions made before us, the simple issue which arises is whether such a penalty could have been imposed on the assessee on the facts of this case. A direct answer to the question is offered by explanation (2) to sub-section (3) of section 73 of the Act. Sub-section 3 ibid enables a person liable to pay service tax, to quantify the amount of service tax to be paid by him, and to pay it up under intimation to Central Excise Officer concerned. In such event, sub-section (3) restrains the Central Excise Officer from issuing any notice under sub-section (1) of section 3 to the assessee in respect of the amount of service tax paid by him. The above explanation reads thus:
   "For removal of doubts, it is hereby declared that no penalty under any of the provisions of this Act or the rules made thereunder shall be imposed in respect of payment of service-tax under this sub-section and interest thereon."
3. As the above explanation is self-explanatory, we need not labour further. The impugned penalty is uncalled for and hence set aside. The appeal stands allowed. The stay application also stands disposed of.

 

 
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