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2017 (3) TMI 1105 - AT - Service TaxValidity of show cause notice - extended period of limitation - Whether the ingredients for resort to proviso to section 73(1) of FA, 1994 are present to obviate the contention that section 73(3) of FA, 1994 should have been resorted to for closing the matter? Held that: - the service tax authorities did commence correspondence with the appellant for payment of remaining dues only following the admission in the service tax returns that the said amount was outstanding. In these circumstances, there can be no greater claim to candidness than that demonstrated by appellant and there is no justification for alleging, or finding, that they had suppressed or misdeclared any relevant material. With such admission of outstandings, intent to evade tax is also an allegation that would not sustain - The ingredients for invoking the extended period, and thus also penalty u/s 78 of FA, 1994, are clearly absent. This is a fit case of closure of the proceedings u/s 73(3) of FA, 1994, without any of the penalties, as tax and interest had been paid on ascertainment and communication from service tax authorities - appeal allowed - decided in favor of appellant.
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