Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2010 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2010 (12) TMI 240 - AT - Service TaxPenalty under section 75(a), 76, 77, 78 - . The appellant entered into an agreement with M/s. BNIPL for marketing of the products manufactured by them - During the period in question, the appellant did not pay any service tax but got themselves subsequently registered with the service tax department in or around Aug. 2004 and started paying service tax - Revenue with a view that the appellant should have paid service tax prior to the registration also with effect from 1-7-2003 under the category of business auxiliary services started investigations at their end - If the assessee proves that there was a reasonable cause for the failure. Reasonable cause can be reasonably said to be a cause which prevents a man of average intelligence and ordinary prudence acting under the normal circumstances without negligence or inaction for want of bona fides - Held that there was bona fide on the part of the appellant to construe the services being provided by them as commission agent services, the same fact applied for holding the demand to be barred by limitations would act as a reasonable cause for setting aside the penalty in terms of provisions of section 80 - It is settled law that where the breach of law flowed from a bona fide belief that the assessee was not liable to act in the manner prescribed in the statute, penalties should not be imposed - Set aside the penalties imposed upon the appellant - The appeal is allowed by way of remand for quantification of demand within the period of limitation
|