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2015 (2) TMI 839 - CESTAT MUMBAIPenalty u/s 76, 77 & 78 - Manpower Recruitment or Supply Agency Service - Held that:- In this case the appellant is engaged in the activity of jobwork on their factory on behalf of their principals. It is alleged that the appellant is providing Manpower Recruitment or Supply Agency Service during the course of Audit. Instead of litigate the matter; the appellant collected the service tax from their principals as whatever service tax paid by the principals is entitled to take CENVAT Credit. In these circumstances, it cannot be said that the appellant was having any intention to evade the payment of service tax. Therefore, when objection has been raised during the course of audit, service tax has been paid by the appellant and later-on interest was also paid to avoid litigation. In these circumstances, the show-cause notice was not required to be issued to the appellant as per Section 73(3) of the Finance Act, 1994. In these circumstances, the appellant is entitled for the benefit of Section 80 of the Finance Act, 1994. Accordingly, I set aside the order of imposition of penalty on the appellant. - Appeal disposed of.
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