https://www.taxtmi.com/caselaws?id=354902 Amounts collected from flat owners as an interest-free management security and later transferred to the residents' society were treated as trustee-held funds, not consideration for taxable service, so service tax on the deposit was not sustainable. Penalties under Sections 78 and 77(2) were also held unwarranted because the delay stemmed from disruption caused by freezing of bank withdrawals, with no suppression, contumacious conduct, or intent to evade tax. However, the late fee under Section 70 read with Rule 7C was upheld because the levy was treated as mandatory despite reasonable cause for delayed filing of returns. en-us Mon, 22 Jan 2018 00:00:00 +0530 Fri, 11 Jan 2019 12:44:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=354902 Amounts collected from flat owners as an interest-free management security and later transferred to the residents' society were treated as trustee-held funds, not consideration for taxable service, so service tax on the deposit was not sustainable. Penalties under Sections 78 and 77(2) were also held unwarranted because the delay stemmed from disruption caused by freezing of bank withdrawals, with no suppression, contumacious conduct, or intent to evade tax. However, the late fee under Section 70 read with Rule 7C was upheld because the levy was treated as mandatory despite reasonable cause for delayed filing of returns. Case-Laws Service Tax Mon, 22 Jan 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=354902