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2014 (8) TMI 151 - HC - Service TaxLevy of penalty - payment of service tax and interest before issuance of SCN - Manpower recruitment and supply agency - Tribunal deleted penalty - Held that:- It is true that as per Sub-section (4), penalty may still attach if there is non-payment of Service Tax by reason of fraud, collusion, wilful mis-statement, suppression of facts or contravention of provisions of the statute with intent to evade payment of Service Tax - Since the recipient company had claimed Cenvat credit on the service tax remitted by the assessee, eventually no liability was incurred by the service recipient and amount of service tax remitted by the assessee was also reimbursed by the recipient - where an assessee has paid both the service ax and interest before issuance of a show cause notice under the Act, sub-section 3 of section 73 of the Act, prohibits initiation of proceedings for recovery of penalty - When there is a finding of fact that this was not a case of non-payment of Service Tax with intent to evade the payment of the same, question of applying Sub-section (4) of Section 73 of the Finance Act, 1994 and resultantly exclusion of application of Sub-section (3) thereof, would not arise - Decided against Revenue.
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