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2015 (2) TMI 390 - AT - Service TaxDelay in discharge of service tax liability - Penalty u/s 77 & 78 - Held that:- No plausible reason or explanation stands submitted by the appellant for non-payment of service tax in respect of the services in question. When the appellant was registered with the Department and was aware of his liabilities and was also paying service tax in respect of other services, the non-payment of service tax in respect of the present disputed services can only be a clear mala fide on his part. The fact of non-payment has, admittedly, come to surface on account of investigations conducted by the Revenue. As such, the deposit of service tax along with interest, subsequent to the investigations made by the Revenue, cannot be said to be covered by the provisions of Section 73(3) of the Finance Act inasmuch as the same cannot be held to be a voluntary payment. An assessee is compelled to accept and deposit the tax liabilities after it has come to the notice of the Revenue on account of investigations conducted by them. Such a course of action adopted by the appellant cannot save him from the penalty provisions. - appellant is admittedly liable to penalty. However, as they have deposited the service tax along with interest prior to issuance of the show-cause notice, I reduce the penalty amount to 25% of the tax - Decided partly in favour of assessee.
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