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2015 (5) TMI 175 - AT - Service TaxPenalty u/s 78 - Duty paid after pointed out by Revenue - Held that:- Respondent had discharged the entire service tax liability and interest thereof as soon as it was pointed out by the departmental officers during the scrutiny of the records. In our view, if an assessee has discharged service tax liability and interest thereof on being pointed out by the departmental officers; the case would fall under the provisions of Section 73(3) of the Finance Act, 1994. - there was no need for issuance of any show cause notice to the respondent. - first appellate authority has used discretionary power granted by the statute under Section 80 of the Finance Act, 1994 to set aside the penalties imposed under Section 78. It is settled law that discretionary powers exercised by the first appellate authority need not be questioned unless such powers are used perversely. In the case in hand, we find that the first appellate authority has used the powers granted under Section 80 very judicially and has correctly set aside the penalty imposed. - Decided against Revenue.
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