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2009 (12) TMI 174 - AT - Service TaxCable operator services- Appellant is a Cable Operator and he was distributing cable services provided by City Cables Services. Cable Operator services became taxable with effect from 16-8-2002. On 10-9-2003, premises of the appellants was searched and appellant was advised to pay service tax. The appellant paid service tax along with interest. In October 2005, show-cause notice was issued proposing the demand of service tax treating the taxable service tax receipts as more than Rs. 11 lakhs and in the first round of litigation the matter was remanded to the Original Adjudicating Authority by Commissioner (Appeals) to recalculate the taxable service receipts. Thereafter, the taxable receipts was recalculated as Rs. 8,04,848 and on this amount total amount of service tax payable by the appellant amounting to Rs. 47,298 with interest as applicable has been demanded and penalties under various sections of the Finance Act, 1994 have been imposed. Held that- The Cable Operator Service was brought into service tax category with effect from 16-8-2002 and appellant being an operator as only distributor of cable service provided by City Cables, the claim that they were under the bona fide belief that they would not be liable to pay tax, cannot be held to be totally wrong. Under these circumstances, I agree with the learned advocate that no penalty was imposable. In view of the above observations, the matter is remanded back to the Original Adjudicating Authority, who shall allow the appellants to take copies of customer service cards, prepare the work-sheet card-wise and submit evidence to the department as to the actual taxable receipts and based on that the demand for service tax as well as interest shall be recalculated. The penalties imposed on the appellant are set aside. Appeal is allowed by way of remand in terms of above observations.
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