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2015 (6) TMI 231 - CESTAT BANGALOREPenalty u/s 78 - Goods Transport Agency service - service tax was not being paid by them on account of financial problems and non-availability of sufficient funds - Held that:- Non-payment of duty on account of financial difficulties without intimating the Revenue, especially when the appellant was registered with the department and was aware of its legal obligations, reflected upon malafides of the appellant. The amount of service tax required to be paid for the period of three years was also not on the higher side and as such, the appellant's contention that the same was not paid on account of financial difficulties, can not be appreciated. Further, the appellants have admitted their tax liability and have paid the same for the longer period of limitation. As such, the invocation of longer period itself suggests that there was suppression or misstatement on the part of the assessee for nonpayment of the tax, in which case penal provisions would get attracted. - as the appellants have already deposited the service tax along with interest before the issue of show-cause notice, the penalty imposed under the provisions of Section 78 is required to be brought down to 25% of the tax amount - penalty in terms of Section 78 is set aside - Decided partly in favour of assessee.
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