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2017 (7) TMI 493 - AT - Service TaxPenalty u/s 76, 77 and 78 - non-payment of service tax - appellant is engaged in providing Stevedoring/Customs House Agent and other connected services related to import/export of goods - Held that: - the provisions of Section 80 which are to the effect that no penalty would be imposed under Section 76,77, or 78 of the Finance Act, if the noticee proves that there was reasonable cause for the said failure. What is a reasonable cause has to be seen and examined in each and every case. Admittedly, such reasonable cause has to be a bonafide cause and must not be burdened with appellant assessee's intentions. The appellant was admittedly liable to pay the service tax in respect of services provided by him. Prior to the present proceedings, a show cause notice for the earlier period was issued to them. As such they were aware of their liability to discharge service tax and it cannot be said that they were entertaining any bonafide belief about their service tax liability - In any case, it stands observed by the lower authority that the appellant was recovering the said tax amount from their customers, in which case again their plea of financial difficult cannot be appreciated. In these circumstances, the applicability of Section 80 is ruled out. The law provides for imposition of penalty, which stands rightly imposed by the adjudicating authority - penalty upheld. Scope of SCN - demand of ₹ 2,81,446/- on the ground that the said service tax amount got escaped from the earlier SCN - Held that: - Such piecemeal adjudication is not permissible. Even if there was some calculation mistake in the earlier show cause notice, Revenue was within its rights to issue corrigendum instead of including the said deficiency in the subsequent show cause notice - confirmation of demand of ₹ 2,81,446/- is neither appreciated nor justified - demand set aside. CENVAT credit - car hire charges - air travel charges - denial on account of nexus - Held that: - it is a well settled law that the car hire charges and air travel charges incurred by the assessee in connection with their business are cenvatable input services and are available as Cenvat credit - credit allowed. Appeal allowed - decided partly in favor of appellant.
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