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2009 (7) TMI 513 - CESTAT, AHMEDABADPenalty u/s 76,77,78- Circular No. 341/18/2004-TRU, dated 17.12.2004- The assessee availed goods transport’s agent (GTA) service during relevant period. The Commissioner confirmed demand of service tax on the assessee and imposed penalties under section 76 and 77, however he dropped the penalty u/s 78. Appellant submits the reasonable cause for the failure to pay service tax. In the light of the CBEC Circular No. 341/18/2004-TRU, dated 17.12.2004, clarified that in case of omission in payment of service tax, the consequence should be limited to the recovery of tax with interest payable thereon. No penalty should be imposed on such defaulter unless the default is on account of deliberate fraud, collusion, suppression of facts with an intent to evade payment of duty of Service Tax. Held that- the invocation of provisions of section 76, 77 were not justified, thus set-aside the said penalty. The Appeal is allowed.
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