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2013 (5) TMI 671 - AT - Service TaxPenalty - Non payment of service tax amount to the department despite being collected from the client - The only issue involved in this case is imposition of equal amount of penalty under Section 78. The allegation of the department is that the appellant deposited the Service Tax after being pointed out by the department and thus they intentionally suppressed the facts, thus liable for the penalty. - held that:- The appellant could not pay Service Tax only on the bona fide belief that they have to pay Service Tax after completion of the entire service not on the basis of account payment received in several lots. The department could not bring out any suppression or wilful misstatement or any intention to evade duty on the part of the appellant. Hon’ble Supreme Court judgment in the case of Rajasthan Spinning Mills (2009 (5) TMI 15 - SUPREME COURT OF INDIA) would apply in cases where ingredients of fraud or collusion or wilful misstatement or suppression of facts or contravention of any of the provisions of this Chapter or the rules made thereunder with intent to evade payment of Service Tax are present.- penalty waived. - decided in favor of assessee.
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