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A show-cause notice was issued imposing penalty on the respondents for late payment of service tax in spite of the fact that the respondents had already paid service tax along with interest — Held, no such notice was required to be issued.

By Puloma Dalal
Jayesh Gogri
Chartered Accountants
Reading Time 1 mins
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(2012) 26 STR 3 (Kar.) — CCE & ST, LTU, Bangalore v. Adecco Flexione Workforce Solutions Ltd. and (2012) 26 STR 4 (Kar.) — Commissioner of Service Tax, Bangalore v. Prasad Bidappa.

A show-cause notice was issued imposing penalty on the respondents for late payment of service tax in spite of the fact that the respondents had already paid service tax along with interest — Held, no such notice was required to be issued.


Facts:

In both the cases, show-cause notices were issued imposing penalty for delayed payment of service tax in spite of the respondents paying the service tax along with interest before issuance of SCN.

Held:

It was held that no notice shall be served on the persons who have paid service tax along with interest. If notices are issued, the person to be punished is the person issuing such a notice and not the person to whom the notice was issued.

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