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2014 (1) TMI 204 - AT - Service TaxDemand of service tax - Whether appellants, is liable to service tax on the services rendered to their members under 'club or association service' - Render of public service - Penalty u/s 76, 77 & 78 - Held that:- penalties are to be imposed under Sections 76, 77 and 78 of the Finance Act are elaborated in the Sections. Only in Section 78 certain clauses require intent to evade or willful suppression. None of these Sections stipulate contumacious conduct on the part of the appellants. In fact, scheme of Service Tax Law is self determination/assessment of tax and payment in the bank. There is no requirement to interact with authority. In the present case 'club or association service' was introduced in 2005. Being a leading Club, it was expected that they would take steps to at least find out whether there is a tax liability on them. There is no evidence whatsoever that they have taken any steps to even find out whether the tax is payable by them. The appellant has not challenged the levy and cannot form bona fide belief from 2005 onwards based upon a High Court judgment in 2013. Confirmation of service tax demands under the taxable service category of Mandap Keeper Service, Club and Association service, Renting of Immovable property service and Sale of space for advertisement service is sustainable in law. In the case of Club & Association service, the tax demand has to be recomputed excluding the bar sales subject to the appellant producing satisfactory evidence in this regard - appellant is liable to pay interest on the above service tax demands in accordance with law - appellant is liable to penalty under Section 76 and 77 - appellant is also liable to penalty under Section 78 of the said Finance Act except in the case of Renting of Immovable property service - demand of service tax under the category of Business Support Services is unsustainable in law and the same is set aside. Consequently, there will be no interest and penal liability on account of this demand - Decided partly in favour of assessee.
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