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2012 (7) TMI 502 - AT - Service TaxDemand of service tax, interest and penalty - Collection of advance fee from students - services were brought into the Service Tax net w.e.f . 01.07.2003 - appellant has been collecting the advance fees from the students during the period from April 2003 to June 2003 – Held that:- they are liable to pay Service Tax on the amount collected as advance fees by them from their students prior to the said services came into the Service Tax net. appellant is liable to discharge the Service Tax liability and interest thereof on the amount collected by them and considering the said amount as cum tax value. Regarding penalties under Section 76 & 78 – Held that:- in the mind of the assessee during the relevant period as to the taxability of the amounts which were collected in advance. Appellant has made out a case for invokation of Section 80 of Finance Act, 1994 and by invoking the provisions of Section 80 of Finance Act, 1994, penalties imposed under Sections 76 & 78 of Finance Act, set aside. lower authorities will calculate the Service Tax amount, interest thereof payable by the appellant, considering the amount collected by the appellant as cum tax amount.
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