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2018 (10) TMI 1374 - CESTAT CHENNAIPenalty u/s 76 and 78 - service tax alongwith interest paid on being pointed out - invocation of Section 73 (1) of FA - Held that:- The appellants were paying service tax regularly upto August 2010 except for few days delay; that from September 2010 to December 2010, the delay ranges from 30 to 40 days for each month; that however they paid appropriate amount of interest for such delayed payment - even in respect of December 2010 covered in the SCN, the due date for payment of SCN was on 06.01.2011, the audit was conducted on 01.02.2011 and the assessee paid entire amount of service tax of ₹ 1,05,84,653/- on 07.02.2011 after a delay of 32 days. There appears to no malafide intention on the part of assessee to evade payment of service tax and that ST-3 returns had also been filed without delay - ingredients of proviso to Section 73 (1) are not present in this case and in consequence there is no scope for imposition of penalty under Section 78 ibid. Penalty u/s 76 - Held that:- The reason of financial crunch given by the appellant should be given some credence, particularly in view of the mitigating factor that it is not a case of absolute non-discharge of tax liability but delayed payment of tax, that too with interest paid thereon - There is reasonable cause for failure to discharge the tax liability and hence we hold that imposition of penalty under Section 76 ibid also is not justified and requires to be set aside. Appeal allowed - decided in favor of appellant.
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