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2018 (12) TMI 1362 - AT - Service TaxNon-payment of Service tax - erection, commissioning and installation services - demand alongwith interest - Held that:- The appellants are engaged in providing solar fencing systems to their customers and owing to some tax concessions, available to the solar power sector they were under the bonafide belief that their activities are not subject to payment of Service Tax. Subsequent to audit of their accounts, it was pointed out that they are liable to service tax under the category of “maintenance or repair services”. The appellant/assessee being a proprietary concern immediately paid the entire liability of service tax along with interest and filed ST-3 returns, though belatedly. The appellants are not disputing their liability of service tax and have paid the entire amount of service tax along with interest which has also been appropriated in the adjudication order but are only before the Tribunal contesting the imposition of penalties - the entire proceedings were initiated based on the final audit report and the ST-3 returns and hence, do not find any element of suppression of facts mis-statement etc. with an intent to evade payment of service tax. The demand of Service Tax and interest is upheld and the penalties imposed u/s 78 and late fine imposed under Rule 7C of the S.T. Rules, 1994 are set side - appeal allowed in part.
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