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2018 (5) TMI 558 - AT - Service TaxPenalty u/s 77 and 78 of the Finance Act, 1994 - service tax along with interest paid much before the issue of SCN and there was no deliberate intention to evade tax, therefore, no penalty should be imposed on them - Held that: - the appellant has collected the service tax but failed to deposit the same in the Government Treasury. No doubt, the appellant has paid the service tax along with interest when the department issued the summons to the appellant. Penalty imposed under Section 77(2) is concerned, the appellant has produced the return which was filed belatedly by him along with penalty of ₹ 2,000/-. Since the returns have been filed with the penalty, therefore, there is no justification for imposing penalty under Section 77(2) of the Act. Penalty imposed under Section 78 - Held that: - in the present case, the Assistant Commissioner has imposed equal penalty under Section 78 of the Finance Act, 1994 and has not afforded an opportunity to pay 25% of Service Tax as penalty within a period of 30 days as per the proviso to Section 78 as applicable during the relevant time - in view of the fact that there was no inordinate delay in payment of service tax along with interest by the assesse, the ends of justice will be met, if the appellant is directed to pay 25% of Service Tax as penalty. Appeal allowed - decided in favor of appellant.
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