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2015 (4) TMI 823 - AT - Service TaxPenalty u/s 70& 77 - goods transport agency services - reverse charge mechanism - Held that:- It is admitted fact that on 13.1.12 appellant took registration and paid service tax along with interest, not for the period in question but for 2006 also. This shows the appellant were under the bonafide belief that they are not liable to pay service tax under reverse charge mechanism as good transport agency service does not exceed ₹ 10 lakhs. Therefore, I hold that the show cause notice was not required to be issued under section 73(3) of the Finance Act, 1994. In these circumstances, penalties are not imposable on the appellant. Further, I find that appellant is not contesting the penalty imposed under section 78 of the Act. Therefore the benefit of this order will not be available for the penalty imposed under section 78 of the Act. In these circumstances, the penalties imposed on the appellant under section 70 and 77 are set aside. - Decided in favour of assessee.
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