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2015 (1) TMI 896 - HC - Service TaxImposition of penalty - Intention to evade tax - Held that:- Appellant has paid the taxes belatedly. However, the grievance of the appellant is entirely against the penalties imposed under Sections 76, 77 & 78 of the Act. Before the Tribunal, though the question of limitation was raised, no serious challenge against the payment of service tax is forthcoming. On facts, the Tribunal has concluded that there is no explanation as to the so called bona fide mistake. The Tribunal on facts has also concluded that it is not a case of bona fide mistake and has upheld the case of the Department. - Merely because the service tax in question is paid prior to the issuance of show cause notice, the assessee cannot be exonerated from payment of penalty. As has been held by the Apex Court in the case of UNION OF INDIA vs. RAJASTHAN SPINNING AND WEAVING MILLS reported in [2009 (5) TMI 15 - SUPREME COURT OF INDIA], any payment of the duty amount in question, whether before or after the show-cause notice has been issued, could not alter the penal liability under Section 11-AC of the Act. Section 11-AC of the Act appears to be pari materia with Section 78 of the Finance Act, 1994. - Decided against assessee.
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