Penalty Incorrectly Upheld Despite Pre-SCN Tax Payment; No Justification for Suppression Allegation Under Sec 73(3) Finance Act 1994.

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....Levy of penalty - Both the lower authorities have erred in confirming the penalty as it is a settled principle that when tax is paid along with interest before issuance of SCN (other than cases of suppression or willful mis-statement), the Department cannot issue SCN in terms of section 73(3) of the Finance Act, 1994 - In the instant case of the Respondent, the Department has mechanically issued SCN alleging suppression of facts without according any reasons for such allegation. - AT....