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2017 (7) TMI 1297 - AT - Service TaxEnhancement of penalty u/s 78 of FA - denial of eligibility for exemption as ‘export of services’ - supply of vessels to customers located overseas during the period from 1st July 2012 to 30th September 2014 for a tenor of less than 30 days - HELD THAT:- Respondent is a public sector undertaking and have promptly discharged tax liability of over ₹ 2 crores along with interest. The show cause notice is bereft of any evidence of misrepresentation or suppression of facts. The levy of tax was determined ultimately on an interpretation to which the respondent forbore to raise any significant objection. It is moot whether there was any requirement under law to proceed with issue of show cause notice. Having issued show cause notice, the proceedings having culminated and penalty imposed under section 78 to the extent of 15% of the tax dues, which survives only on account of non-challenge on the part of the respondent. The appeal of Revenue for imposition of full penalty fails to sustain - appeal dismissed.
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