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2017 (10) TMI 966 - AT - Service TaxPenalty - Closure proceedings - Section 73 (4) of FA - Held that: - It would appear that the closure under Section 73 (3) was not considered, only on the ground that the service tax liability paid by the appellant was for period spread over more than three years. I find that as long as full service tax liability with interest is discharged by the assessee and the ingredients of Section 73 (4) could not be brought out with supporting evidence, the case has to be closed under Section 73 (3). Such closure is not barred only by the reason that the demand pertains to longer period. When the assessee admits the liability, irrespective of the duration and pay the same with interest, the case has to be closed - In the present case, the bar under Section 73 (4) cannot operate. While upholding the tax liability of the appellant with interest, I find the penalty imposed based on the proceedings initiated is not justifiable - appeal allowed in part.
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