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2014 (8) TMI 923 - AT - Service TaxBusiness Auxiliary Service - Penalty u/s 76, 77 & 78 - visa consultancy service to students who want to study abroad - commission from local visa consultancy agents for referring students - Held that:- Appellant has discharged the service tax liability and the interest thereof, on being pointed out about the tax liability. It is also noted that the statements of the concerned officials of the assessee also clearly indicate that they were unaware of the law as to the taxability of the service rendered to them by the local agents. We also find that the first appellate authority while setting aside the penalties imposed on the appellant under section 78 of Finance Act 1994 as recorded that the adjudicating authority has not recorded any findings on the imposition of penalty under section 78. This itself would reinforce the argument of the appellant that they were under bonafide belief that the service tax liability does not get attracted. We find strong force in the of contention raised by the Ld. Counsel that the appellant had never collected the amount of service tax liability from the service recipient though the bills were raised for the service rendered - appellant could have entertained a bonafide belief that the service rendered by him may not be taxable. We are of the view that the appellant had made out a reasonable cause for setting aside the penalties imposed on him under section 76 and 77 of the finance act 1994 - Decided in favour of assessee.
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