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2021 (7) TMI 854 - AT - Service TaxShort payment of service tax - Service Tax Voluntary Compliance Encouragement Scheme, 2013 - abatement sought for material components - availment of Composition Scheme - substantial false declaration or not - HELD THAT:- The calculation of tax short paid, as made by the ld. Commissioner in the impugned order, is not due to any mis-declaration or false declaration under VCES. Ld. Commissioner has categorically observed that difference in tax liability is mainly due to interpretation and change in calculation of service tax, therefore, the mistake of the respondent/assessee in the declaration is bona fide and there is no malafide on their part. In view of the decision of the Larger Bench in the case of M/S BHAYANA BUILDERS (P) LTD. & OTHERS VERSUS CST, DELHI & OTHERS. [2013 (9) TMI 294 - CESTAT NEW DELHI (LB)], the respondent is not required to pay service tax on the receipt of materials supplied free of cost, received from the principal. Thus, the amount demanded in the impugned order for the period 2012-2013 and 2013-2014 is set aside. Hence, the respondent is only required to pay the differential duty of ₹ 1,53,100/-. Further, penalty under Section 78 is also set aside, there being no case of falsification or contumacious conduct, in the facts and circumstances on the part of the respondent/assessee. The late fee of ₹ 20,000/- under Rule 7C is reduced to ₹ 10,000/-. The appeal of Revenue is dismissed.
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