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2015 (6) TMI 1041 - AT - Service TaxDemand of Service tax and imposition of penalty - Section 77 and 78 read with Section 80 of the Finance Act, 1994 - International Courier Service - neither service tax paid nor ST-3 returns filed even after collecting from their customers - reason for non-payment is that the courier/cargo industry was facing severe recession - Held that:- it is to be noted that the appellant's act of not paying tax, collected from their clients, to the Revenue is totally unjustified. The facts would not have come to light but for the visit by the department officials. In these circumstances, the imposition of penalty is wholly justified. However, in this case the penalty from ₹ 16 lakhs was reduced to ₹ 8,00,660/-. This is not a case where the tax was not paid on account of any interpretative issue of law. This is a case where the tax was collected but not paid to the exchequer. This warrants no leniency. Accordingly, the impugned order is upheld. - Decided against the appellant
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