2016 (3) TMI 71

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..... of tax has been paid in two instalments before adjudication. Also the part of penalty has been discharged - Held that: 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 deserve .....

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..... ted payment of tax, interest has also been paid in two instalments. In the first instalment, an amount of ₹ 30,37,993/- and education cess of ₹ 32,806/- and in second instalment the balance amount of tax due was deposited before adjudication. So also part of penalty has been discharged. The default occurred due to no realization of taxes from service recipient duly. Therefore, levy of .....

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..... 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 mechanism hardship is faced by the tax payer if incidence of tax is not realised from the service recipient. Considering such aspect and taking into consideration that a part of the penalty amount .....

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