2016 (3) TMI 71

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..... Finance Act, 1994 to leniently consider the Outdoor Catering Service for immunity from penalty under section 78 of the Act. Appellant says that entire service tax liability has been discharged. For belated payment of tax, interest has also been paid in two instalments. In the first instalment, an amount of Rs. 30,37,993/- and education cess of Rs. 32,806/- and in second instalment the balance amou .....

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..... questioned by learned departmental representative. There is no element of mens rea coming from the Adjudication order. Therefore, penalising the appellant under section 78 would be harsh in view of the reasonable cause of discharge of liability belatedly due to delay of realisation of service tax from the service recipient deserves consideration. Levy of service tax being an indirect tax mechanis .....

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