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2018 (8) TMI 328 - AT - Service TaxPenalty u/s 78 - reverse charge mechanism - revenue neutrality - service tax with interest paid on being pointed out - Held that:- There is no dispute on the facts of the case that the appellant had received some services which were liable to service tax under reverse charge mechanism. When this was pointed out he paid service tax along with interest. It is also not in dispute that the service tax so paid could be claimed by them as CENVAT credit - When service tax is short paid by not reflecting the full value in the ST3 returns which subsequently detected during audit it will not be unreasonable to conclude that there was suppression with a mala fide intention. The assessee could have gained nothing since the entire amount could have been available to them as CENVAT credit. Since the entire exercise is revenue neutral, no mala fide can be attributed to them as there is nothing on record to show that they gained by not paying the Service Tax - penalty set aside. Appeal allowed - decided in favor of appellant.
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