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2019 (10) TMI 1041 - AT - Service TaxImposition of penalty u/s 77 and 78 of FA - the entire amount of service tax along with interest was paid by the appellant before issuance of SCN - benefit of sub-section (3) of Section 73 ibid - Suppression of facts/intent to evade or not - HELD THAT:- It is an admitted fact on record that the diamond manufacturing unit, including the appellant herein have challenged the constitutional validity of Section 66A ibid before the Hon’ble Bombay High Court and also made representation to the Finance Minister of Government of India regarding the clarification on the issue, whether customs duty or service tax to be levied on such type of transaction. Thus, under such circumstances, it cannot be said that non-payment of service tax during the relevant period was owing to the reason of suppression or misstatement of facts etc. Since, the appellant had deposited the service tax along with interest before issuance of the show cause notice, in my considered opinion, the benefit of sub-section (3) of Section 73 ibid should be available to the appellant for non-issuance of any show cause notice, especially seeking for imposition of penalties. Penalties set aside - appeal allowed - decided in favor of appellant.
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