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2016 (6) TMI 159 - AT - Service TaxImposition of penalty - Section 78 of the Finance Act, 1994 - Advertisement Agency Service - non-payment of Service tax - entire demand along with interest paid before issuance of SCN - Held that:- if the tax payable stands paid based on assessee's own ascertainment or on the basis of Central Excise Officer, before service of notice on an assessee, no notice shall be served in respect of the amount so paid. In this case, no notice ought to have been issued as the appellant is coming within the regress of Section 73(3). It is found that this is a repetitive show cause notice and therefore by applying the decision of Hon'ble Supreme Court in the case of Nizam Sugar Factory Vs CCE - [2006 (4) TMI 127 - SUPREME COURT OF INDIA], when relevant facts are in the knowledge of the authorities, when the first SCN was issued, the subsequent SCN cannot allege suppression of facts. The penalty under Section 78 can be imposed only when there is fraud or collusion or wilful misstatement or suppression of facts but in the instant case when the tax along with interest stands paid, the need for imposition of penalty is unsustainable. - Decided in favour of appellant
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