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2012 (11) TMI 85 - CESTAT, MUMBAIInterest on delayed payment of service tax – Held that:- Appellant has admitted the liability to pay service tax, which he has recovered from the customers, along with interest thereon - there is a delay in payment of service tax, the appellant is liable to pay interest thereon on the defaulted payment under Section 75 of the Finance Act, 1994. Interest liability will accrue from the due date for the payment of service tax till such time the payment is actually made. Penalty - penalties have been imposed under Section 76 for delay in payment of service tax, under Section 77 for filing of returns belatedly and under Section 78 for suppressing the fact of receipt of service tax from the customer – Held that:- Penalty under one of the said provisions will suffice considering the fact that the appellant is a small service provider - orders passed by the lower authorities, the option/facility for paying penalty @ 25% of the penalty determined within a period of 30 days from the date of receipt of the order was not been give - order passed is incorrect as far as imposition of penalty is concerned - appellant is liable to penalty under Section 78 of the Finance Act equal to the service tax defaulted. However, the said penalty shall stand reduced to 25%, if the said liability is also discharged within 30 days from the date of receipt of this order along with the balance of service tax due and interest liability thereon as discussed above. Penalty under Section 77 is upheld.
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