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2014 (10) TMI 28 - AT - Service TaxImposition of penalty - Whether the penalty of ₹ 6,67,226/- imposed on the appellant under Section 76 for failure to pay the Service Tax by the due date can be waived under Section 80 of the Finance Act, 1994 - Held that:- Section 80 provides that notwithstanding anything contained in the provisions of Section 76, Section 77 or Section 78, no penalty shall be imposable on an assessee for any failure referred to in the said provisions if the assessee proves that there was reasonable cause for the said failure. The point of dispute is as to whether the failure to discharge the Service Tax liability by the duty date on account of financial crisis can be treated as reasonable cause for the purpose of this Section. This point has been considered by the Tribunal in the case of Ramanasekar Steels Ltd. (2007 (10) TMI 28 - CESTAT, CHENNAI) wherein the Tribunal has held that when the assessee has been declared as sick by BIFR it is a reasonable cause for delay in payment of tax warranting waiver of any penalty under Section 76. Things would have been different had non-payment of tax was due to fraud or with intention to evade the tax, which is not the allegation here. I am, therefore, of the view that ratio of this judgment of the Tribunal is squarely applicable to the facts of the present case. No contrary decision has been pointed out by the respondent. In view of this, the impugned order upholding the penalty imposed under Section 76 is not sustainable - Service Tax demand along with interest and penalty imposed under Sections 70 and 77 are upheld, the penalty imposed under Section 76 is set aside - Decided partly in favour of assessee.
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