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2015 (11) TMI 102 - AT - Service TaxWaiver of penalty u/s 80 - service tax was paid at the instance of Audit team - Reverse charge mechanism - Business Auxiliary Services and Management Consultant Services - Held that:- there is no case of contumacious conduct and/or suppression of facts, or any case of mis-statement with intention to evade the payment of duty/tax is made out against the appellant. The explanation given by the appellant, at the very first instance, at the time of recording of the statement, that the discrepancy occurred due to lack of co-ordination between the two Departments as separate officers were dealing with the banking matter and other dealing with the Central Excise and Service Tax compliances have not been found to be untrue, by both the Courts below. Further I find from the conduct of the appellant that they have co-operated with the audit and immediately on finding the discrepancy, that is short payment of service tax, without waiting for any instruction from the Revenue, they have deposited the service tax, short paid along with interest. - appellant have been paying about ₹ 15 crores of Central Excise & Service Tax P.A. during the period in question. Further the appellant being entitled to CENVAT credit on the service tax paid on the input services, there is no incentive to evade the service tax liability. Thus I hold that the appellant is entitled to the benefit under the provisions of Section 80 of the Finance Act. I further find under the facts and circumstances that the ingredients of penalty under Section 70 are not there as there is no finding as to the delayed filing of the returns. - Impugned order is set aside - Decided in favour of assessee.
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