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2018 (8) TMI 818 - AT - Service TaxBusiness Auxiliary Service (BAS) - non-payment of Service Tax - bonafide belief or not? - suppression of facts - demand of service tax with Interest and penalty - Held that:- In this case if no audit took place at the end of M/s Godavari Pipes Pvt. Limited, the evasion of service tax would not have been detected by the Revenue. The contention of the appellant that they wees under bonafide belief that their service recipient has to pay service tax is not acceptable as there is no written agreement between the appellant and the service recipient - also, as ignorance of law is not an excuse, therefore, the contention of the appellant is not acceptable. As appellant is not paying service tax and not filing Service Tax Returns, in that circumstances, the appellant failed to prove the bonafide belief that the service recipient are paying service tax. In fact, if service recipient is paying the service tax on behalf of the appellant, then also under Section 77 also the appellant is required to file their ST-3 returns which appellant failed to do. Penalty - Held that:- The demand of service tax was of ₹ 8,49,855/-. Against the said demand, the appellant paid an amount of ₹ 19.35,580/- which shows that appellant was diligent to pay service tax. Therefore, the said act of the appellant warrants no penalty is imposable on the appellant - penalty u/s 78 set aside - As appellant has provided taxable service for which the appellant was required to file ST-3 returns in time, which appellant failed to do. In that circumstances, penalty under Section 77 of the Act is confirmed. Appeal disposed off.
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