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2015 (11) TMI 529 - AT - Service TaxDemand of service tax - Repair and maintenance service - Penalty u/s 76, 77 & 78 - Benefit of Section 80 - Held that:- Appellant is a partnership firm providing repair and maintenance services to M/s. Hindustan Aeronautics Ltd. which is Government undertaking company. The services have been provided under the legal contract and as per the contract there was no terms of service tax liability and the same was not pointed out by the service recipient i.e. Government of India undertaking. In view of this fact it is clear that in non payment of service tax there cannot be intension for evasion of service tax, particularly when recipient is Government of India undertaking. - appellant has explained the reason for failure to make service tax payment and without contest admittedly paid service tax and subsequently they discharged interest and penalty of ₹ 24,000/- under Section 77. I am therefore of the considered view that appellant have shown reasonable cause for non payment of service tax. Therefore in terms of Section 80 of the Finance Act, 1994, the appellant deserves waiver of penalty. I therefore waive the penalties imposed under Section 76 and 78 - However, demand of service tax , interest and penalty of ₹ 24,000/- under Section 77 confirmed by the Commissioner(Appeals) stand upheld - Decided partly in favour of assessee.
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