Delhi High Court Reviews Penalty on Reverse Charge Mechanism for Legal Services; Deemed Unreasonable Due to Lack of Intent.

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....Penalty on tax liability discharged under RCM on legal services - The issue of levy of service tax on legal services is undisputedly a question of law pending consideration before the Hon’ble High Court of Delhi. Imposition of penalty in these circumstances, does not at all arises. Otherwise also, there is no evidence of any positive act on the part of the appellant proving that appellant had intention to evade the payment of duty. In these circumstances, the order of imposition of penalty is held unreasonable. - AT....