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TMI Blog2019 (5) TMI 148X X X X Extracts X X X X X X X X Extracts X X X X ..... tax during the relevant period. This is a fit case for invocation of section 80. Impugned order is modified to the extent of setting aside the penalties only without disturbing the confirmation of demand or interest thereon - appeal allowed in part. - ST/42357/2018 - Final Order No. 40490/2019 - Dated:- 12-3-2019 - Smt. Sulekha Beevi C.S, Judicial Member For the Appellant: Ms. S. Sridevi, Adv. For the Respondent: Shri L. Nandakumar, AC (AR) ORDER Brief facts are that the appellants are engaged in providing Man-power Recruitment and Supply Agency Service and are registered with the department. On scrutiny of records, it was noticed that they had not discharged ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lant will be able to get only a small profit margin. The counsel for the appellant submitted that they later paid the entire service tax. When the service recipient failed to make payments for the service provider the appellant was put to constraints financially. She therefore submitted that penalties imposed alleging that the appellant had intention to evade payment of service tax is without any factual basis. 3. With regard to penalty imposed under section 77 of the Act ibid, learned counsel submitted that the appellants had maintained proper accounts and also filed returns. From the accounts maintained by the appellant, the department was able to issue notice to the service recipient and recover the amount. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bility as the payments were not received from their customers. I hold that the appellant has given reasonable cause for failure to discharge the service tax during the relevant period. This is a fit case for invocation of section 80. It is also seen from the records that the appellants were maintaining proper accounts for the transactions and they were also filing returns regularly. On such score, the penalty imposed under section 77 is also unwarranted. There is no evidence to establish that the appellant has not discharged the service tax with an intention to evade payment of duty. I, therefore, set aside the penalties imposed under section 77 and 78 by invocation of section 80 of the Act ibid. Impugned order is modified to the extent of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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