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2018 (11) TMI 1458 - AT - Service TaxPenalty - Delayed payment of service tax - Management, Maintenance or Repair Service - It is the case of the assessee that they had to pay salary to their staff, PF, ESI and other statutory dues to their staff which created a huge cash flow problem and hence the service tax payment was delayed - Held that:- An identical issue has been considered by CESTAT, Chennai in the case of M/s. Dusters Total Solutions Services Pvt. Ltd. Vs. CST, Chennai [2018 (9) TMI 825 - CESTAT CHENNAI], where it was held that the appellant has paid up the service tax belatedly before issuance of SCN. The interest which is in the nature of compensation for the delay in payment, was also paid after issuance of SCN and much before issuing the Order-in-Original. The conduct of the appellant in paying up service tax and interest, and the categoric finding of the Commissioner that there is no intention to evade tax, persuades us to hold that appellant has established reasonable cause for invoking Section 80 of the Act ibid. The penalty imposed is not proper and therefore by using discretion under Section 80 of the Finance Act, the same is set aside - demand with ineterst upheld - appeal allowed in part.
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