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2016 (11) TMI 1290 - AT - Service TaxDemand - construction of residential complex services - Held that: - For the period 01.07.2010 to 31.03.2012, it is seen that the appellant on being pointed by the officers immediately discharged their tax liability along with interest. In as much as the issue of taxability was the subject matter of the Hon’ble High court of Bombay whereas the vires of the same was challenged it can be safely concluded that there was confusion in respect of the taxability of the same. In such a scenario the provisions of section 73B would come into play, thus not requiring any issuance of show cause notice. As such I find no justifiable reasons to impose penalty upon the assessee. Accordingly while confirming tax already paid along with interest I set aside the penalty imposed on the said count. As regards amount of ₹ 2,52,715/- which appellant collected from their customs for the period 2007-08, the same also stands paid by the assessee subsequently along with interest of ₹ 1,02,722/-. I do not find any merit in the appellant’s plea of bonafide in respect of the said amount in as much as having collected the same in the name of the revenue and having retained the same, definitely reflects upon appellant’s intention of enriching themselves at the cost of Revenue. While upholding the confirmation of the said demand along with interest, I am of the view that the appellant needs to be penalized on the said count. The penalty of ₹ 10,000/- imposed by the lower authorities under section 77 of the Finance Act is accordingly upheld. The appeal is disposed off.
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