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2023 (10) TMI 994 - CESTAT HYDERABADDenial of benefit of closure of proceedings u/s 73(3) of the Finance Act - levy of penalty u/s 77 & 78 of FA - HELD THAT:- Admittedly, transaction has been duly recorded in books of accounts maintained in the normal course of business. Further, as the Cenvat credit of the tax paid under reverse charge mechanism is available to the Appellant, as they are manufacturing dutiable goods as well as rendering dutiable services, there is no incentive to evade. Further, admittedly, Appellant had paid the tax with interest as pointed out by the audit without disputing the same and have even paid the tax for the period even prior to 18.04.2006, which on the face of it is not payable. The Appellant was entitled for closure of dispute relating to the demand, under Sec 73(3) of the Act - penalties set aside - appeal allowed.
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