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2016 (3) TMI 951 - AT - Service TaxImposition of penalty - Section 76, 77 and 78 of the Finance Act, 1994 - Management Consultancy Service - Appellant rendered the services of advice and consultancy for various individuals and independent organizations with regard to the entire operation of the hotel in order to bring those hotels to the level of “Taj” - Entire Service tax along with interest paid before issuance of show-cause notice - Held that:- appellant could have entertained bonafide believe that the advice, consultancy as given by them may not be covered under ‘Management Consultancy Services' and they are rendering the business of the various hotels in the same manner from 1988, therefore, no Service Tax liability arises. So, the appellant has made out a justifiable case for setting aside the penalties imposed. Therefore, the Service Tax liability on ‘Management Consultancy Services' was in nascent stage when the Audit Party brought to the knowledge of appellant that Service Tax liability arises, which was discharged immediately. So, by invoking the provision of Section 80 ibid, penalties imposed under Section 76, 77 and 78 are set aside. - Decided in favour of appellant
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