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2010 (8) TMI 213 - CESTAT, AHMEDABADPenalty - Authorized service station - liability of service tax on the amounts received as an incentive from the banks as DSA/DSTs, PDI charges from Bajaj Auto and reimbursement for free services rendered to Bajaj Auto - appellants discharged liability before SCN - penalty imposed on the ground of non-payment of service tax and suppression/mis-declaration - Held that:- Board had issued clarification vide circular No. 87/05/2006-S.T., dated 6-11-2006 with regard to liability of service tax, on free services given by the authorized dealers and charges reimbursed by the vehicle manufacturers and commission received by the auto dealers for introducing customers to seek finance/loans. In situations where Board issued a clarification that there was doubts and clarifies the doubts, persons who are liable to service tax cannot be held to be liable to suppression of facts and imposition of penalty. Hence, penalty imposed u/s 78 is waived. Since, penalty u/s 77 is imposed for violation of provisions and it does not require the department to prove suppression of facts or intention to evade duty - appeal is partially allowed by way of setting aside penalty imposed u/s 78 and upholding penalty imposed u/s 77 of Finance Act, 1994.
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