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2018 (12) TMI 949 - AT - Service TaxDemand of interest and penalties - non-payment of service tax - rent received - Held that:- There was delay in dispatch of the Order-in-Original and therefore the demand of interest cannot sustain. This argument is neither tenable nor acceptable. The demand of interest is correct and proper and therefore is upheld. Penalty u/s 78 - Held that:- The appellant had not collected service tax from the tenants and that the matter was remanded by Commissioner (Appeals) to requantify the service tax liability giving cum-tax benefit. Taking note of this fact, it is established that the appellants were under the bonafide belief that they are not liable to pay service tax and were not collecting the service tax from the tenants. Further, there is no evidence to establish that they had suppressed facts with intention to evade payment of service tax - the penalty imposed under section 78 cannot sustain. Penalty u/s 77(2) of FA - non-filing of returns within the stipulated period - Held that:- Since the appellant has later filed the returns and also paid the service tax and taking into consideration that the appellant is a Government wing, the penalty imposed under section 77(2) cannot sustain and requires to be set aside. Appeal allowed in part.
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