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2015 (12) TMI 885 - AT - Service TaxDemand of service tax - steamer agent service, cargo handling service and business auxiliary service - Waiver of penalty - Held that:- Apparently, the appellants paid the amount when audit objection was raised to settle the issue rather than pursuing the matter and litigating further in this case. The department has proceeded only for the purpose of imposing penalty. The amount was paid even before show-cause notice was issued along with interest. If the appellant were to contest the issue on classification at that stage itself the benefit of limiting the demand to normal period also could have arisen and further, whether demand itself was justified or not could have been examined. In such a situation, the appellant is definitely entitled to benefit of provisions of Section 80 of Finance Act, 1994 for the purpose of penalty under Section 78 of Finance Act, 1994. In this case, during the period prior to 2010, the services rendered in port were to be classified according to the category and the nature of service. Only after 2010, the statute treated all services rendered within the port as port service. Therefore since the activity undertaken and the amount collected is for transportation within the port from warehouse to wharf and vice-versa, appellant could have entertained a bona fide belief that what is being rendered is a GTA service. - Decided in favour of assessee.
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