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TMI Blog2018 (11) TMI 1149X X X X Extracts X X X X X X X X Extracts X X X X ..... he secured loans increased from 11.62 crores in April 2008 to 12.46 crores in March 2009 and unsecured loans increased from ₹ 76.67 lakhs to ₹ 97.78 lakhs; that sundry debtors have gone up from 4.43 crores to 7.56 crores during the same period. They furnished documents to establish these facts. The delay / non-payment of service tax cannot be said, is an act of suppression of facts with intent to evade payment of tax. In fact, the demand has been raised on the basis of figures furnished by appellant and department has no allegation of any deliberate act done to evade payment of tax - the ingredients for imposing penalty under section 78 are not attracted. Penalty u/s 76 and 78 set aside - penalty u/s 77 upheld - appeal al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ervice and the delayed payment of service tax was only due to financial crisis. Appellants are engaged in supply of manpower to various airline clients and due to the delayed payment from the airlines, as these airlines were undergoing much financial crisis due to increase in price of aviation turbine fuel and global recession, the appellant was unable to pay the service tax. They could not afford to delay the payment of wages to the 5000 labourers employed for baggage handling, ticketing, ground support, driving etc. In order to sustain the business, the appellant had to give priority to such payments. Moreover, the appellant could not retrench their employees also as they have to continue to supply the manpower to airlines. As and when an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... penalties imposed under sections 76 and 78 of the Finance Act, 1994. He argued that the non-payment of service tax was due to non-receipt of the dues from the airlines and also due to the delayed receipt of amounts. It is seen from the records that their clients include M/s. Indian Airlines and M/s. Kingfisher Airlines. The appellant in their reply to the show cause notice has stated that they were undergoing much financial crisis due to non-receipt of the amounts from airlines. The said ground of non-payment of service tax due to financial difficulties has been discussed in detail by the Tribunal in the case of M/s. Dusters Total Solutions Pvt. Ltd. (supra) wherein the Tribunal had set aside the penalty imposed under Section 76 of the Fin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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