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2019 (2) TMI 1841 - AT - Service TaxImposition of penalties - mismatch between the ST-3 returns figures and the amounts recorded in the accounts manual - HELD THAT - Appellant deposited an amount of Rs. 4, 99, 377/- with interest with the authorities before the issuance of the show cause notice but has not discharged an amount of Rs. 43, 191/- till date. Both the lower authorities have confirmed the demands raised and also appropriated the amounts deposited and imposed penalties under Section 78 which is equivalent to 50% of the tax liability confirmed. Tax liability of Rs. 43, 191/- and consequential interest and penalties - HELD THAT - There is no case for the assessee as they have not paid any amount on this account in order to claim leniency. Demand of tax liability of an amount of Rs. 4, 99, 377/- - demand already paid alongwith interest - time limitation - HELD THAT - This amount has been paid by the appellant on 29.02.2016 along with interest. Show-cause notice is dated 03.03.2017 and the said show-cause notice is invoking only the demand within the period of limitation i.e. 30 months as per the provisions of Section 73(3). If that be so in my considered view provisions of Section 73(1) of the Finance Act 1994 will directly apply and lower authorities should not have issued any show-cause notice for this amount seeking to impose penalty. Since in respect of an amount of Rs. 4, 99, 377/.- appellant has already paid the amount before issuance of show-cause notice and the show-cause notice also is not invoking any extended period for this amount the impugned order to the extent it upheld the penalties on this account is unsustainable and liable to be set aside - tax liability with interest upheld - penalty set aside. Appeal disposed off.
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