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2022 (7) TMI 92 - AT - Service TaxLevy of penalty u/s 78 of Finance Act - non-discharge of service Tax on due dates - Service Tax with interest paid before the issuance of the show cause notice - suppression of facts or not - issuance of SCN under rule 73 (3) of FA - HELD THAT:- It is found that this is not the case where the appellant have supressed the transaction of services whereas, they have issued the legitimate invoices wherein they have shown the Service Tax. This is only case of delayed payment of Service Tax which was subsequently paid on 1st December, 2005 along with interest. From Section 73(3) it is clear that if the assesse on his own ascertainment or on pointed out by the department pay the required Service Tax along with interest then department is not supposed to issue any show cause notice, consequently, no penalty can be imposed - In the present case, the appellant have admittedly paid the Service Tax on 1st December, 2005 along with interest, thereafter, the show cause notice was issued on 12.03.2017. Since, the appellant had already paid the Service Tax along with interest without contesting the same their case clearly falls under Section 73 (3) of Finance Act, 1994. The penalty imposed under Section 78 is set aside - Appeal allowed - decided in favor of appellant.
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