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2016 (6) TMI 579 - AT - Service TaxImposition of penalty - Section 77 and Section 78 of the Finance Act, 1994 - Goods Transport Agency and Renting of Immovable Property - appellant failed to take registration and received rents for the godowns - Held that:- the contentions of appellant that it had discharged the service tax liability prior to the issuance of show cause notice. That therefore, as per Sub-section(3) of Section 73 of the Finance Act, the imposition of penalties is unjustified. Further that the issue whether “Renting of Immovable property” is taxable or not was a contentious one. Sub-section (2) to Section 80 was introduced which provided that no penalty shall be imposed if the service tax along with interest on this category is paid within a period of six months from the date of Finance Bill, 2012 receives assent of the President. The appellant had paid the service tax on “Renting of Immovable Property” prior to the introduction of the said sub-section to Section 80 of Finance Act, 1994 are not without merits. Therefore, by following the decision of Tribunal in the case of Sethi Tools Pvt.Ltd Vs CCE & Cus. & ST Vododara [2015 (9) TMI 633 - CESTAT AHMEDABAD], the penalty imposed Under Section 78 is not legal or proper and is set aside. However, the penalty of Rs,5,000/- imposed under Section 77 is sustained as the appellant has failed to establish cogent reason for not taking registration. The demand and interest is confirmed. - Decided partly in favour of appellant with consequential relief
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