https://www.taxtmi.com/caselaws?id=435503 Penalties under Sections 77 and 78 of the Finance Act, 1994 were held unjustified where the service tax short payment arose from an interpretational dispute over the timing of liability on renting of immovable property. The record showed regular maintenance of accounts, payment of tax in the ordinary course, and no suppression, fraud, or wilful evasion. The shortfall was treated as a matter of calculation and timing rather than deliberate default, and the assessee paid the tax with interest after audit objection. On that basis, reasonable cause for the lapse was found and the penalties were set aside. en-us Mon, 13 Mar 2023 00:00:00 +0530 Wed, 22 Mar 2023 08:39:03 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=435503 Penalties under Sections 77 and 78 of the Finance Act, 1994 were held unjustified where the service tax short payment arose from an interpretational dispute over the timing of liability on renting of immovable property. The record showed regular maintenance of accounts, payment of tax in the ordinary course, and no suppression, fraud, or wilful evasion. The shortfall was treated as a matter of calculation and timing rather than deliberate default, and the assessee paid the tax with interest after audit objection. On that basis, reasonable cause for the lapse was found and the penalties were set aside. Case-Laws Service Tax Mon, 13 Mar 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=435503