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2017 (3) TMI 1456 - AT - Service TaxPenalty - reverse charge - For the purpose of raising capital, appellant have received the services of non-resident institutions i.e. a person who has established a business or has a fixed establishment in a country other than India - The period in dispute is 18.04.2006 to 30.11.2007 - Held that: - recipient in India became liable to service tax for the service received from abroad only from 18.04.2006, after the enactment of Section 66A - this was the first time, since 18.04.2006, that the services provided by the appellant was brought under the service tax net. This was the initial period and first year, hence, the appellant was not aware of the provisions. However, soon after knowing about the liability, the tax was paid along with interest - Moreover, the appellant is an Agency of the government under Article 12 of the Constitution and no individual interest is involved. When it is so, there is no justification for levy of penalty - reliance placed in the case of INDIAN NATIONAL SHIPOWNERS ASSOCIATION Versus UNION OF INDIA [2008 (12) TMI 41 - BOMBAY HIGH COURT] - appeal allowed - decided in favor of assessee.
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