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2016 (7) TMI 128 - AT - Service TaxDemand of service tax from the Sub-contractor - levy of penalty - there was a written agreement between the appellant and main contractor to the effect that the main contractor would discharge the service tax liability of the subject work. That on the strength of such agreement appellant neither paid tax nor filed returns for the subject work. - Held that:- the contention of the appellant that the failure to pay tax was because the appellant bona fidely believed that the main contractor would discharge service tax liability as stated in the agreement is not without merits. The second issue is the penalty imposed on account of failure to take registration. it has to be stated, that this is not a case where the appellant totally failed to take registration. Appellant had registration under the category Works Contract Service and not under commercial or industrial construction service. Department is of the view that the service would fall under Commercial or Industrial Construction Service. Both being construction services, the contention of the appellant that they believed that services would fall within the category of works contract service is probable and acceptable. Demand of service tax with interest confirmed - Levy of penalty u/s 77 & 78 waived invoking the provisions of section 80 - Decided partly in favor of assessee.
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