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2016 (9) TMI 685 - AT - Service TaxWaiver of interest and penalties - imposed under Section 76 and 78 of the Finance Act, 1994 - Security Agency services - appellant had already paid ₹ 33,450/- of service tax out of the total amount of ₹ 78,359/- - appellant has a reasonable cause for not paying service tax as the same was not paid by the recipient - Held that:- so far as chargeability of interest on the Service Tax amount due is concerned, it is observed that appellant has not discharged the entire Service Tax liability. Under the Service Tax law, if service tax liability is not discharged within the prescribed time then interest from the date of service tax due till it is paid is required to be paid. Appeal of the appellant with respect to chargeability of interest is, therefore, rejected. So far as imposition of penalties under Section 76 and 78 supra are concerned, it is observed that appellant was having a reasonable cause for not making payment to the department because Service Tax was not separately recovered from the service recipient. Appellant's case is, therefore, covered under the provisions of Section 80 of the Finance Act, 1994 and accordingly penalties imposed upon the appellant under Section 76 and 77 are set aside. - Decided partly in favour of appellant
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