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2010 (1) TMI 145 - AT - Service TaxDemand of service tax, interest and penalty - transportation rendered by truck owners themselves to HPCL - demand of Service Tax of ₹ 6,47,98,642/- - The appellant has obtained clearance from Committee on Disputes (COD). As per the clearance, the appellant is allowed to contest only the interest and penalty adjudged in the impugned order. Interest demand is on service tax found due under Goods Transport Agency (GTA) service from HPCL. - The appellant was under bonafide belief that they were not liable to pay Service Tax on the service availed by them. As soon as the liability was clarified by the CBEC they paid service tax after registering with the department. Hence, there was no intention of the part of the appellant to evade the payment of service tax. Held that: We find that the liability to service tax on the activity of transportation of petroleum products by truck owners for HPCL was pending for clarification before the CBEC till 30.1.2006. The appellant had made a representation for clarification on 23.2.2005. After obtaining the clarification, the appellant got registration with the department and paid the service tax due immediately. As the liability to service tax demanded is not contested, liability to interest confirmed as per law is sustainable. However, we find that no penalty is liable to be imposed on HPCL as they had rightly believed that the activity impugned was not exigible to service tax. Consequently penalties are liable to be vacated.
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