9911796707
TMI Blog2018 (7) TMI 1219X X X X Extracts X X X X X X X X Extracts X X X X ..... and there is nothing unearthed by the department to show that there was any positive act of suppression on the part of the assessee. This is a fit case for invoking Section 80 of the Finance Act, 1994 as the appellant has put forward reasonable cause for non-payment of service tax during the disputed period - penalty set aside, without disturbing the demand confirmed as well as the interest thereon - appeal allowed in part. - Application No. ST/Misc[CT]/41703/2017 & Appeal No.ST/515/2011 - FINAL ORDER No. 42029 / 2018 - Dated:- 18-7-2018 - Hon ble Ms. Sulekha Beevi, C.S., Member (Judicial) And Hon ble Shri Madhu Mohan Damodhar, Member (Technical) Shri M. Karthikeyan, Advocate For the Appellant Shri A. Cletus, ADC (AR) For t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pay staff / workers and their salaries. Despite this financial crunch, appellant had taken all efforts to realize the payments but could not succeed. When the payments were received, the appellants remitted the same along with interest. The delay in making the payment of service tax was only due to the delay in receiving payments. He points out that the amount of service tax along with interest was paid much before issuance of show cause notice. Only the differential amount as calculated by the department due to change in the rate of service tax from 12.24 % to 12.36% was to be paid. The same was paid within one month after issuance of SCN i.e. 15.11.2008. Thus, appellant had paid the entire service tax liability along with interest before ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssed facts with intention to evade payment of tax. The figures required for quantification of the demand of service tax has been taken from the accounts maintained by the appellant and there is nothing unearthed by the department to show that there was any positive act of suppression on the part of the assessee. We therefore find this is a fit case for invoking Section 80 of the Finance Act, 1994 as the appellant has put forward reasonable cause for non-payment of service tax during the disputed period. We therefore hold that the penalty imposed under Section 78 is unwarranted and requires to be set aside. The impugned order is modified to the extent of setting aside penalty imposed under Section 78 of the Act only, without disturbing the d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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