2017 (4) TMI 858

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..... lekha Beevi, C. S.] 1. The above appeal is filed by the appellant being aggrieved by the penalty imposed under Section 78 of the Finance Act, 1994. 2. Brief facts of the case are that appellants are registered with the service tax department for providing Survey and Map Making Services and Information Technology Software Services (ITSS). It was noticed by the department that appellants did not f .....

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..... giving the benefit of reduced penalty of 25% (Rs.10,28,517/-) under Section 78 of the Finance Act, 1994 and imposed late fee of Rs. 2,000/- under Section 77 of the Finance Act, 1994 for not filing ST-3 returns for the period April 2010 to September 2010. In appeal, the Commissioner (Appeals) upheld the same. Hence this appeal. 3. On behalf of the appellant, the Ld. Consultant Sh. V.S. Sudhir sub .....

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..... ement/suppression of facts. He placed reliance on the judgment in the case of M/s ICOMM Tele Ltd., passed vide Final Order No. A/30151-30152/2016 dated 08.02.2016 wherein the Tribunal followed the judgment in the case of Ramanasekar Steels Ltd., Vs CCE, Chennai [2008 (9) STR 132 (Tri-Chennai)] to absolve the assessee from penalty imposed under Section 78. 4. Against this, the Ld. AR Sh. Chandra B .....

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..... ants have paid more than half of the demand of service tax along with interest. Even then the department has proceeded to raise demand for the extended period alleging suppression of facts. It is also noteworthy that total demand raised is arrived from the financial statements and such other documents furnished to the department by the appellant. Nothing hidden was unearthed by the department. Mer .....

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..... hen the service tax is not paid due to financial hardships, Section 80 can be invoked to give the benefit of waiving penalty. In view thereof, I hold that the imposition of penalty under Section 78 is unjustified. The impugned order is modified to the extent of setting aside the penalty imposed under Section 78 only without disturbing the confirmation of demand, interest thereon or the late fee im .....

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