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2017 (9) TMI 1378 - AT - Service TaxPenalty u/s 76 and 78 - payment of tax after issuance of the SCN - case of assessee is that they were under the bonafide belief of the applicability of the tax and therefore, no penal provisions should be invoked - Manpower Supply/Recruitment Agency Service - Held that: - it is clearly evident that the Department was aware of the activities of the appellant. It is noted that the appellant rendered the service on the basis of the agreement. The Adjudicating Authority observed that the appellant paid the amount of service tax after issuance of SCN, but have not shown any proof of payment i.e T.R. 6 Challan and therefore, their intention to evade service tax by suppressing the facts, cannot be ruled out - penalty u/s 78 is not warranted. The appellant immediately paid tax after issuance of show-cause notice and for the same reasoning, penalty under Section 76 of the Finance Act, 1994, should be waived by invoking Section 80 of the Act, 1994. Appeal allowed - decided in favor of appellant.
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