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2010 (7) TMI 423 - KARNATAKA HIGH COURTPenalty – suppression of value of taxable service - payment of service tax with interest and penalty in pursuance of the show-cause notice issued - assessee filed a NIL return and after service of show-cause notice, assessee realized mistake and paid tax with interest and penalty – assessee not a bona fide omission on the part of a housewife - a lady who wilfully evaded service tax and suppression of fact - question of law answered in favour of the revenue and against the assessee When once she filed a NIL return and after service of show-cause notice, she realised her mistake and paid tax with interest and penalty, that by itself did not constitute sufficient reason to give her exemption from payment of penalty under section 78 of the Act. This aspect of the matter has been completely missed by the Tribunal which seems to have been unduly carried away by the fact that assessee is a lady. The Tribunal failed to notice that people who want to indulge in such malpractices, would purchase properties or carry on business in the names of housewives as their front and carry on the activities. Therefore, authorities need not unduly worry about the persons in whose names the vehicle stand, but they have to look at the substance of the case and find out if it is a case of wilful evasion or bona fide error.
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