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2018 (11) TMI 1150 - AT - Service TaxPenalty u/s 76, 77 and 78 - Non-payment of Service tax - appellants though collected service tax, had not deposited the same to the Government - no intent to evade - Held that:- The appellants, though initially were paying service tax and were filing returns properly, had defaulted payment of service tax and filing of returns after 2005-06. The company was going through much financial hardship and it took some time for them to recover and for that reason, the service tax liability got accumulated. Nothing is brought out from evidence that there was any positive act of suppression with an intention to evade payment of service tax. Other than the delay caused due to financial crisis, we do not find any material to establish an intention to evade payment of service tax. This is a fit case to invoke Section 80 since the appellant has put forward reasonable cause for the failure to discharge the service tax liability - the penalties imposed under Section 76 and 78 of the Finance Act, 1994 set aside without interfering with the penalty imposed under Section 77 of the Act ibid - appeal allowed in part.
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