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2013 (11) TMI 798 - CESTAT AHMEDABADLevy of penalty where service tax has been deposited before issuance of show cause notice - Section 73(3) versus Section 73(4) - Business Auxiliary Service - The adjudicating authority did not impose penalties, by relying on provisions of Section 73(3) of the Act. - Revenue filed an appeal against the order - Held that:- where there was wilful contravention of the provisions of Chapter 5 of the Act, with a view to evade payment of service tax, provisions of sub-section 3 would not apply, in view of the provisions of sub-section 4 of Section 73. It is axiomatic Legislation is operative proprio vigore on its enactment and effectuation. The operation of legislation is not contingent upon affirmation by the judicial branch, even where a challenge to its constitutionality is presented before the Courts. No person therefore, could reasonably harbour any manner of doubt that when legislation is under challenge, the challenged legislation is in eclipse to be upheld. A doubt. The appellate authority has rightly rejected the appellant's claim in this regard and has rightly reversed the order of adjudicating authority on a true and fair construction of Section 73(4) of the Act. The order of the Appellate Commissioner is impeccable and warrants no interference - Decided against assessee.
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