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2019 (1) TMI 1667 - CESTAT MUMBAIEOU - Imposition of penalty u/s 77 and 78 of FA - entire amount of service tax along with interest was deposited by the appellant before initiation of the show cause proceedings - Benefit of sub-section (3) of Section 73 of FA - HELD THAT:- It is an admitted fact on record that the appellant had incorrectly computed the service tax liability and had also paid the differential amount of such liability along with interest before issuance of the show cause notice - the payment particulars were duly reflected by the appellant in the periodic ST-3 returns filed before the department, which is evident from the observations made at paragraph 6 in the impugned order. Further, the department has not substantiated the allegation of fraud, collusion, misstatement etc., in arriving at the conclusion that the appellant should be exposed to the penal consequences provided under the statute - Thus, in absence of any proper substantiation with regard to involvement of the appellant in the activities concerning fraud etc., the benefit of subsection (3) of Section 73 ibid should be extended to the appellant for non-issuance of show cause notice, especially for imposition of penalties. Penalties set aside - appeal allowed - decided in favor of appellant.
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