2017 (4) TMI 853

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....ndent Per: C J Mathew: M/s Orbit Corporation Ltd is in appeal against order-in-original no. 01/ST/SB/2012-13 dated 7th August 2012 of Commissioner of Service Tax (TAR), Mumbai which has confirmed tax liability of Rs. 79,48,761/- interest thereon, and penalties under section 76, 77 and 78 of Finance Act, 1994. Allegedly, appellant had procured services of 'architect' and 'management or business c....

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....them, that with the insertion of Explanation 2 therein, the imposition of penalty is not warranted, that with effect from 10th May 2008 penalties under section 76 and section 78 were mutually exclusive, and that section 80 of Finance Act, 1994 should have been invoked. 4. Learned Authorised Representative places reliance on the decision of the Tribunal in Jay Ajit Charia v. Commissioner of Centra....

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.... because the service tax in question is paid prior to the issuance of show cause notice, the assessee cannot be exonerated from payment of penalty. As has been held by the Apex Court in the case of Union of India v. Rajasthan Spinning and Weaving Mills reported in (2009) 13 Supreme Court Cases 448, any payment of the duty amount in question, whether before or after the show-cause notice has been i....

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....r recourse to section 73 (4) of Finance Act, 1994 to issue notice for confirmation of tax and for imposition of penalty. The circumstances of tax levy on 'reverse charge' under section 66A was fraught with controversy and it was only upon judicial settlement that a clear picture emerged. The fastening of intent to evade tax is, therefore, without justification. 7. We note the explicit bar in circ....