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2013 (11) TMI 1457 - AT - Service TaxWaiver of penalty u/s 80 - Penalty under section 76 & 78 - Construction of residential complex services - Assessee neither got registered with the department under the Service Tax Act nor filed any returns to the department - Commissioner (Appeals) after invoking section 80 dropped the penalty as the appellant had contended the existence of bonafide belief that service tax would be applicable only when actual sale was effected - Held that:- amendment was effective from 1.7.2010. Visit to the factory by the officers was on 16.8.2011. It was found that the Respondent had already started booking of flats w.e.f.August, 2010. Law was already on the statute book. Therefore everyone was expected to know the law. Question of existence of bonafide belief as provided under section 80 of the Finance Act, 1994 does not come to their rescue. If registration was taken on their own and service tax would have been deposited thereon even at the time of booking of flats, question of bonafide belief would have come into play. There is nothing on record to show that they have made any effort to know about liability of service tax or approached department for any clarification. It was only after visit of the departmental officers, appellants got themselves registered - penalty reduced to equal to fifty percent of service tax due as provided under the first proviso to section 78 - Decided partly in favour of Revenue.
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