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2015 (12) TMI 1600 - AT - Service TaxLevy of interest on delayed payment of service tax under Section 75 of the Finance Act, 1994 - imposition of penalties under Sections 76, 77 and 78 of the Finance Act, 1994 - Security Services - appellant had not filed ST-3 returns for the period from October 2004 to March 2005 and April 2005 to September 2005 and they have also not paid the service tax dues pertaining to the said period. On the same being pointed out by the audit party, the appellants paid the service tax of ₹ 22,87,217/- and interest amounting to ₹ 43,350/- on different dates - Held that: - there is no dispute regarding tax liability, which is upheld. The appellant had paid almost the entire amount of service tax due, except a small portion before issuance of show cause notice. It is also observed that the remaining amount was paid immediately after the adjudication order. We find force in the arguments of the learned counsel that the penalty equivalent to service tax, under Section 78 of the Finance Act, 1994 is not warranted in view of the facts of the case. Therefore, penalty imposed under Section 78 of the Finance Act, 1994 is set-aside. However, we find force in the arguments of the learned Authorized Representative that the appellants had not filed ST-3 returns and had not paid the service tax dues though they were aware of their liability. Hence, we uphold the penalties imposed under Section 76 and 77 by the adjudicating authority. As the amount of penalty is not quantified in the order-in-original, we direct the adjudicating authority to quantify the same in accordance with the impugned order-in-original - appeal allowed by way of remand.
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