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2019 (3) TMI 1433 - CESTAT CHENNAIImposition of penalty u/s 78 of FA - service tax with interest and penalty u/s 77 paid on being pointed out - no intent to evade - extended period of limitation - Held that:- The appellant has discharged the service tax of ₹ 36,69,976/- along with interest under Manpower Recruitment or Supply Agency Service and Business Auxiliary Service much before the issuance of the Show Cause Notice - Further, apart from a bald allegation that the appellants have suppressed facts with an intention to evade payment of service tax, there is no positive act of suppression brought forth by the Department so as to attract the ingredients of invocation of extended period of limitation - the imposition of penalty under Section 78 on the amounts under Manpower Recruitment or Supply Agency Service and Business Auxiliary Service are unwarranted and requires to be set aside. Time limitation in respect of the TDS amount - Held that:- No positive act of suppression has been adduced by the Department. Further, as per records, the appellant had not discharged the service tax on the TDS amount for the reason that the bills with respect to this amount were pending for more than five years. Taking all these facts into consideration, the demand of service tax on the TDS amount is time-barred - The demand under this category is therefore set aside on the ground of limitation. The impugned Order is modified to the extent of setting aside the penalty with respect to Manpower Recruitment or Supply Agency Service and Business Auxiliary Service - demand for non-inclusion of TDS amount is set aside on the ground of limitation - appeal allowed in part.
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