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2016 (12) TMI 543 - AT - Service TaxImposition of penalty u/s 78 - invocation of section 80 - evasion of tax - Held that: - the adjudicating authority has reached to conclusion that there is no deliberate intention to evade payment of duty on the part of the appellant. It needs to be mentioned that the appellant was disclosing the liability of service tax in the Income Tax returns and the balance sheets. It is also submitted that the appellant was under much financial difficulties due to ill health and therefore defaulted the payment and there was no intention to evade payment of tax. Penalty is imposed as a punishment for an act of suppression, fraud or wilfull misstatement with intent to evade payment of duty. In the present case, the appellant having disclosed the liability of service tax in returns filed before the Income Tax authorities, no suppression can be alleged against the appellant - I hold that the imposition of penalty is unsustainable - appeal allowed - decided in favor of appellant-assessee.
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