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2017 (11) TMI 660 - AT - Service TaxClosure of proceedings - invocation of Section 73(4A) of FA - duty paid alongwith interest and penalty - Held that: - the appellant has paid the service tax along with interest and also paid 1% penalty and requested the department for closure of the proceedings but the department did not close the proceedings and proceeded to issue the show-cause notice and by passing the impugned order imposed various penalties. Further, I also find that the Commissioner has allowed the closure of the proceedings only for the period 8.4.2011 t 31.3.2012 by holding that the said proviso is only prospective and also held that no penalties are imposable for this period. Tribunal in the case of SS Service providers [2016 (9) TMI 486 - CESTAT CHANDIGARH] has held that provisions of Section 73(4A) will be applicable even for the period prior to the issuance of Show-cause notice. If the ratio of the above decision is followed, then the department should have closed the proceedings as the appellant has paid the duty, interest and 1% penalty. Once the appellant pays duty along with interest, no show-cause notice should have been issued. Appeal allowed - decided in favor of appellant.
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