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2018 (9) TMI 1367 - AT - Service TaxPenalty u/s 77 and 78 of FA - service tax with interest paid before issuance of SCN - invocation of sub-section (3) of Section 73 of the Act for non-issuance of SCN with respect to penalties - Held that:- The authorities below have not specifically made the issue regarding involvement of the appellant in the activities of fraud, suppression etc, with intention to defraud the Government revenue - the benefit of Section (3) of Section 73 of the Act should be extendable to the appellant for closure of subsequent proceedings, upon payment of service tax along with interest. Since the department initiated show cause proceedings only for appropriating the amount already paid by the appellant and for imposition of penalties, such action on the part of the authorities below cannot be sustained for judicial scrutiny. Penalties set aside - appeal allowed - decided in favor of appellant.
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