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2017 (8) TMI 834 - AT - Service TaxPenalty u/s 76 and 78 - Section 73(3) of the Finance Act, 1994 - Reverse Charge Mechanism - fees/facility agent fees to Mandatory Lead Arrangers - the appellant availed of External Commercial Borrowings (ECB) from non-resident lenders through Mandated Lead Arrangers (MLAs) - Held that: - there is no dispute on the fact that the issue involved in the present case is of interpretation of service tax law regarding the taxability of the service in the hands of the recipient if it is provided from outside India. In this situation, there was bona fide belief of the appellant for non-payment of service tax in time. It is also fact that the appellant paid the service tax along with interest before issuance of show cause notice and informed to the department. In these circumstances, the appellant case is squarely covered by Section 73(3) of the FA, 1994 - there is no mala fide intention or suppression of fact on the part of the appellant. The case is squarely covered by Section 73(3) of the Act, accordingly the appellant should not have been issued any SCN, consequently no penalty either should have been proposed or imposed in such SCN - appeal allowed - decided in favor of appellant.
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