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2024 (2) TMI 82 - AT - Service TaxLevy of penalty u/s 78 of FA - suppression of facts - requirement to issue SCN when the amount of service tax along with interest is paid up - HELD THAT:- On perusal of show cause notice it is seen that notice has been issued pursuant to audit verification. It is also mentioned in the show cause notice that appellant discharged the service tax along with interest in November 2012. As per sub-section (3) of Section 73 of Finance Act, 1994 no show cause notice shall be issued when the amount of service tax along with interest is paid up as ascertained by the officer or assessee. In the present case, after payment of service tax and interest by the appellant the show cause notice has been issued alleging suppression of facts. On perusal of records, it is found that appellant has reflected all the transactions in their accounts, balance sheets and other financial documents. So also the show cause notice is based only upon the audit verification. For the subsequent period, the Hon’ble Gujarat High Court in COMMISSIONER, CENTRAL GST AND CENTRAL EXCISE VERSUS TIRUPATI SARJAN LIMITED [2018 (11) TMI 423 - GUJARAT HIGH COURT] has upheld the decision of the Tribunal wherein the penalty was set-aside observing that there is no suppression of facts. It is found that no evidence adduced by the department to substantiate the allegation of suppression of facts with intention to evade payment of service tax on the part of the appellant for the disputed period. The impugned order is modified by setting aside the penalties imposed without disturbing the confirmation and appropriation of service tax and interest - Appeal allowed.
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