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2016 (11) TMI 18 - AT - Service TaxDemand of service tax - imposition of interest and penalties - advertising services - Held that: - As regard the tax liability of the services, we find that services provided by the appellant are indeed taxable and the same is liable for service tax. As regard the penalties under Section 76, 77 and 78, we find that the appellant though not discharged service tax in due time but they have been paying service tax in installment and almost entire demand was paid before issuance of show cause notice. The appellant given reason for non payment of service tax in time that they were in severe financial crisis. It is also fact that appellant had accounted for entire service tax payable as an outstanding in their books of accounts which shows that they had bonafide intention to discharge the service tax. Even if the service tax was collected but shown as a outstanding in the balance sheet, it can be construed that appellant had no malafide intention - appellant showed the reasonable cause for non payment of service tax on due time. Interest on the said service tax also paid by the appellant separately as per the direction of this Tribunal - appellant entitled for waiver of penalty under Section 76,77 and 78 in terms of Section 80 of the Finance Act, 1994, therefore penalties set aside - demand of tax with interest maintained - appeal disposed off - decided partly in favor of appellant.
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