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2017 (2) TMI 208 - CESTAT MUMBAIImposition of penalties u/s 76, 77 and 78 of the Finance Act - the appellant has discharged the entire service tax liability for the period 18.04.2006 to 31.07.2010 along with interest thereof during the course of investigation itself - whether imposition of penalty justified? - Held that: - appellant has already paid entire tax liability along with interest hence the provisions of Section 73(3) of the FA, 1994 gets attracted in this case - SCN for penalties should not have been issued. The appellant could have availed the CENVAT credit of the service tax paid under reverse charge mechanism, which would mean that there may be no intention on the part of the appellant not to discharge the service tax liability on the amount paid as royalty and technical know-how fees. Revenue neutrality is a defence that could be claimed for non-imposition of penalty. The authorities need not have issued any SCN u/s 73(i) of the FA, 1994 to the appellant for imposition of penalties - penalties set aside - appeal allowed - decided in favor of appellant.
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