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2019 (2) TMI 585 - AT - Service TaxImposition of penalties - invocation of section 80 of FA - cleaning services rendered by them to Indian School of Business - levy of service tax - issue in confusion - Held that:- The Finance Act, 2010, with retrospective effect from 01.07.2003 clarified that profit motive is not an essential ingredient for an Institute in the field of “Commercial Training or Coaching Centre Services” which would mean that if an Institute is even established as a non-profit company, the fact has to be verified as to whether the service rendered is to a non-commercial organisation - We find that subsequently in the case of Indian School of Business [2008 (12) TMI 666 - CESTAT BANGALORE], the Tribunal has held that Indian School of Business is imparting education and not a commercial concern, a view which of course is now covered by retrospective amendment. The sequences of events would indicate that appellant applicant could have entertained a bonafide belief as to non leviability of tax as the services to Indian School of Business is an acceptable view and hence they have justified reasons for not collecting and paying the service tax from December 2007. This is a fit case to invoke the provisions of Section 80 of the Finance Act, 1994 - penalty set aside - appeal allowed.
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