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2015 (11) TMI 782 - AT - Service TaxPenalty u/s 76 & 77 - whether penalties imposed upon the appellant under Section 76 & 77 of the Finance Act, 1994 are justified when appellant has paid the entire differential service tax along with interest before issue of Show Cause Notice - Held that:- Recipient of the services informed appellant that rate of duty on Works Contract Services as per Notification No.32/2007-ST dt.22.5.2007 was 2%. It is not brought out by the Revenue that appellant was aware of the fact that service tax of 4% as per Notification No.7/2008-ST dt.1.3.2008 was required to be paid and deliberately paid tax at 2%. Proper ST-3 returns were filed by the appellant showing rate of service tax as 2% which in effect was 4%. Appellant disclosed the correct value of services provided in the returns. Appellant also wrote to the service recipient on 16.10.2009 to pay the differential service tax, but subsequently paid the same suo-moto on 19.10.2009 and intimated the department. Even if appellant came to know of a Show Cause Notice being issued then also the fact remains that the entire differential service tax was paid along with interest. Even otherwise also from the returns filed Revenue would have given appellant a demand. As no penalty under Section 78 was imposed by the Adjudicating authority appellant s conduct of paying entire differential service tax along with interest, before the issue of Show Cause Notice or on the date of Show Cause Notice, will have to be appreciated. - Decided in favour of assessee.
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