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2019 (3) TMI 1432 - AT - Service TaxImposition of penalties - service tax collected but failure to remit the same to the Government - suppression of facts or not - Held that:- Other than the allegation that the appellants collected service tax and failed to remit the same to the Government, there is no positive act of suppression alleged in the Show Cause Notice and established by the Department - Various courts have held that the word “suppression” is qualified by the word “wilful” and therefore, there should be some positive act of suppression with an intention to evade payment of service tax. Mere collection and delay to remit to the Government cannot be considered as an act of suppression. The Hon’ble jurisdictional High Court in the case of C.S.T., Chennai Vs. M/s. Lawson Travel and Tours (I) Pvt. Ltd. [2015 (1) TMI 232 - MADRAS HIGH COURT] held that when the assessee faced financial crisis due to criminal breach of trust committed by their sub-agent and thereafter paid the service tax voluntarily, the penalties imposed should have been rightly set aside by invoking Section 80 of the Act. The penalty imposed under Section 78 ibid is unwarranted and requires to be set aside - impugned Order is modified to the extent of setting aside the penalty imposed under Section 78 ibid only without disturbing the demand of service tax, interest or the penalty imposed under Section 77 ibid - appeal allowed in part.
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