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2017 (7) TMI 899 - AT - Service TaxFamily clubbing activities - appellants had received huge consideration in the form of membership fees and charges, however, they did not deposit the service tax payable on such consideration and also did not file service tax returns - penalty - Held that: - Appellants have clearly suppressed the fact of the huge considerations received by them on account of Membership Fees and the like and evaded service tax liability on that count. It is also not the case that the department was well aware of these omissions for the reason that appellants had not filed any returns during the period. At the same time, I find that the erstwhile section 78, while mandating equal penalty in situations of fraud, suppression of facts etc., did provide for reduction of penalty to 50% where complete transactions are available in specified records - it cannot be denied that complete details of the transactions were available in the records of the appellant, whether in documents or computerized form. Another mitigating factor that has to be noted is that appellant definitely did pay up the tax liability of ₹ 7,50,882/- in March, 2014 itself, although, the show-cause notice was issued much later in October, 2014. The penalty requires to be reduced to 50% of the service tax demand of ₹ 7,50,882/- - appeal allowed - decided partly in favor of appellant.
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