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2020 (3) TMI 809 - AT - Service TaxImposition of penalty - Non-payment of Service tax - assessee had received services from abroad, viz. Management service/advise, Data Communication, use of Trademark, etc. - reverse charge mechanism - Suppression of material facts or not - HELD THAT:- Perusal of the provisions of Section 73, 77 and 78 of the Finance Act, 1994 states that Section 73(3) is very clear as it says that if a tax is paid along with interest before the issuance of show-cause notice, then in that case show-cause notice shall not be issued. In the present case, it is found that the contention of the appellant that they bona fidely believed that they are not liable to pay service tax but when the audit party raised the objection that they are liable to pay service tax, then they immediately paid the service tax along with interest which is admitted in the impugned order, is justified - Further except mere allegation of suppression, the Department did not bring any material to prove that there was suppression and concealment of facts to evade payment of tax. The imposition of penalty under Section 77 & 78 is not justified and bad in law - Penalty set aside - appeal allowed - decided in favor of appellant.
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