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2017 (3) TMI 1293 - AT - Service TaxSecurity agency service provided by the society of ex-serviceman - commercial concern or not - tax entry section 65(105)(w) - Held that: - the services rendered are squarely covered by the tax entry and we see no merits in the pleas of the appellant in this regard. The lower authority examined the issue in detail and we find no ground in the present appeal to interfere with the findings. Similarly, the appellants are covered for tax liability for the whole period of demand is clear from their legal status and financial accounts to the effect that they are, infact, involved in profitable commercial activity. It is clear from the bylaws of the society which clearly stipulates about net profit - there is no justification to hold the appellant as anything other than commercial entity. It is clear that the appellants did not provide the required details and come forward with full facts during the course of audit during subsequent inquiry conducted by the department. Even at the time of filing regular ST 3 return, the appellant did not show the full gross amount received from the clients for providing taxable service. Considering these facts as recorded in the impugned order, the demand is sustainable for the full period. Penalties - Held that: - there is reasonable cause for non payment of Service tax during the material time. Considering the background of operation of assessee and also circumstances pleaded by the appellant in appeal, we find it fit and proper to waive the penalties imposed on the appellant, invoking the provisions of section 80 as available during material time. Appeal allowed - decided partly in favor of appellant.
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