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2014 (12) TMI 748 - CESTAT NEW DELHIPenalty u/s 76, 77 & 78 - Intention to evade tax - bonafide belief - Held that:- Only during the search on 17.01.2006 it was discovered that the appellants had not paid the impugned service tax which pertains to the period 01.04.2002 to 31.03.2003. In his statement which was recorded several days after the search, the proprietor Shri V.P. Singh did not claim to be ignorant about service tax and indeed admitted that the appellants service tax liability was pending. It is totally untenable to claim that proprietary organisation is not a concern. They were clearly engaged in commercial activity. So the appellants were clearly a commercial concern. It is seen that M/s. Vasudha Security Pvt. Ltd. had taken registration in the year 2005 which clearly shows that they were aware about the service tax leviability on security services way before the search operation. Thus, it was not a case of ignorance on the part of the appellants but a deliberate act on their part to evade service tax. - Decided against assessee.
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