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2016 (1) TMI 260 - AT - Service TaxLevy of penalty - Waiver u/s 80 - appellant is not disputing the leviability of service tax. - Import of services - service of merchant banking in relation to external commercial borrowings (ECB) and Global Depository Receipts (GDR) - Held that:- t the appellant paid the service tax on 18.12.2007 whereas the show cause notice was issued on 11.08.2008 and adjudicated on 18.08.2011. The prompt payment of service tax even before the issue of show cause notice shows the genuineness of the appellant. It is a case of bonafide belief of the appellant that service tax was not payable. Even the interest was paid soon after the passing of the adjudication order. Most importantly, it is seen that whatever tax is paid by the appellant is available to them as Cenvat credit. In such a situation, being a big company, we are of the view that the appellant had no intention to avoid payment of service tax which would have been available to them as Cenvat credit and non payment would not result in any financial benefit. The case deserves waiver of penalty under section 80 of the Finance Act and we order so. - Penalty waived - Decided in favor of assessee.
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