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2023 (6) TMI 313 - AT - Service TaxLevy of penalty u/s 78 of FA - entire service tax demanded along with interests paid before issue of the Notice - suppression. of facts or not - requirement to issue SCN as per section 73(3) of the Finance Act, 1994 - HELD THAT:- The Appellant has not paid the service tax on their own. The tax was paid only after initiation of investigation by the department. During the course of investigation, the Appellant has not cooperated with the department. They have furnished wrong information to the investigating authorities on various occasions. The findings of the adjudicating authority indicate that the Appellant tried to mislead the investigation .The Appellant has been receiving money from their client for the services rendered, but failed to pay service tax. From the statements recorded, it is evident that the Appellant was aware of the service tax liability on the services rendered by them. Thus, there was an intention to evade payment of service tax on the part of the appellant. Accordingly, penalty has been rightly imposed by the adjudicating authority under Section 78 of the Finance Act. Since the entire tax confirmed in the impugned order has already been paid, the adjudicating authority has given the option of payment of 25% of the tax amount as penalty. The appellant had already paid the 25% of the duty as penalty, albeit ‘under protest’. Thus, they have complied with the payment of duty and penalty as determined in the impugned order. The impugned order passed by the adjudicating authority upheld - appeal dismissed.
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