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2016 (11) TMI 518 - AT - Service TaxDivestment programme - Appellant had taken over control of “Hotel Centaur” from Govt. of India - Mandap Keeper Services - Health and Fitness Services - Dry cleaning Services - Held that: - Once it is accepted that the Appellant were rendering Mandap Keeper/ Banquet Servcies and the Bills were raised for the gross amount towards food and all services related with such activity, the assessee would be eligible for abatement of 40% from the value of the service for payment of service tax. Therefore the service tax liability of the Appellant in respect of “Mandap Keeper” services should be on the value after abatement of 40% in terms of Notification No. 21/97 - ST dt. 26.06.97 and subsequent analogus notifications. We accordingly hold that the Appellant is eligible for abatement of 40% from the value of services under aforesaid notifications. Imposition of penalty u/s 76,77 and 78 - Held that: - the Appellant had taken over the hotel known as “Hotel Centaur” from Govt. of India under its divestment programme. However as the facts appear, due to non cooperation by employees and their strike, litigation in High Court, VRS to their employee and subsequent closure the service tax payment could not be made. We also find that details of services rendered by them were appearing in their Bills and accounts books. we find that the non payment of service tax on above services was due to financial constraints as well as various happenings as mentioned above. Moreover, the Appellant has not contested the service tax liability which is payable and major amount was already deposited. We therefore hold that the Appellant is eligible for waiver of penalties in terms of Section 80 of the Finance Act, 1994. Penalties u/s 75A - Held that: - Appellant has not got the Health & Fitness and Dry-cleaning services incorporated in their registration. Therefore penalty under section 75A imposed, is sustained. Demand of service tax reduced - penalties u/s 76,77 and 78 set aside - appeal allowed - decided partly in favor of appellant.
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