2016 (2) TMI 1035

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....y the defaulted sum. The appellant requested for time as they could not make the payments due to financial difficulties. A show cause notice dated 15-02-2011 was served proposing to impose penalty under Section 76 and 78. The appellant replied by explaining that appellant is under extreme financial difficulties. They requested installment facility to clear the dues. They paid the defaulted principal amount of tax on 14-09-2011 and paid interest on the defaulted amount on 01-11-2011. The appellant had filed ST-3 returns showing the outstanding due of tax. After due process of law, the original authority observed that there is no mis-declaration of service tax assessment. That the amount payable is clear from records and there being no malafi....

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....llant use to disclose the liability by filing ST-3 returns. That the appellantshaving explained the reason for failure to pay tax, they should be given the benefit of Section 80 of the Finance Act, 1994. 4. Against this, the learned AR Shri C.S.Raju and Shri Shastry vehemently argued that as there is default in paying the service tax and the penalty imposed under Section 76 is reasonable and justified. It was submitted that the original authority erred in holding that there is no malafide intention to evade payment of duty. They urged that penalty under Section 78 has also to be imposed. 5. I have considered the submissions made by both sides. The appellants have discharged their tax liability along with interest. The question that poses ....