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2017 (10) TMI 661 - AT - Service TaxNon-payment of service tax - Security Services - penalty - whether such non-payment of service tax by the appellant was on account any one of the ingredients mentioned in the said section 78? - Held that: - reliance placed in the case of Union of India Vs Rajasthan Spinning Mills [2009 (5) TMI 15 - SUPREME COURT OF INDIA] laying down that when the statute provides mandatory penalty, the question of payment of duty before or after notice cannot alter liability to penalty. Inasmuch as, the conditions of section 11AC of Central Excise Act in that case were found to be satisfied, the Hon'ble Supreme Court observed that payment of differential duty before the issuance of the show-cause notice cannot be adopted as a reason for setting aside the imposition of penalty - In the present case, it already stands observed that non-payment was on account of malafide, the imposition of penalty under section 78 cannot be set aside on the ground of the appellant having deposited the entire duty and interest prior to the issuance of the show-cause notice - penalty upheld - appeal dismissed - decided against appellant.
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