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2016 (8) TMI 893 - AT - Service TaxImposition of penalty under section 78 of the Finance Act, 1994 – respondent entered in a contract for Site Formation, Clearance and Excavation Services – work further sub-contracted by respondent – confusion regarding the liability of service tax - service tax paid by respondent when demanded and thereafter penalty imposed – section 80 of the finance act, 1994 – Held that: - the category having been introduced recently on the services in question, there was a lot of confusion and chaos in the field, giving a bonafide belief to the assesee that there would not be any tax liability on him. The actual services was duly provided by sub-contractor and he was discharging the full service tax liability. In such a scenario, the assesse's stand that they were under a bonafide belief that no tax liability would fall upon them as the same stands discharged by the sub-contractor is required to be appreciated in which case, the provisions of section 80 of the Finance Act, 1994 would get invoked – no penalty imposed – appeal disposed off – decided against Revenue.
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