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2016 (8) TMI 848 - AT - Service TaxWaiver of penalty – section 77 and 78 of the Finance Act, 1994 - demand of service tax with interest and penalty – Renting of immovable property – sale of space for advertisement – bonafide belief – no intention to evade tax – section 80(2) - section 80(1) - Held that: - It nowhere says that in case of failure to avail benefit under sub-section (2) of Section 80, the benefit under sub-section (1) of Section 80 will be taken away. As per sub-section (1) of Section 80 if the assessee proves reasonable cause for failure, then no penalty shall be imposible. The appellant has established that the failure was caused because they were a small scale service provider with regard to the service of sale of space advertisement. They bonafidely believed that no tax was payable on the services of renting of immovable property during the relevant period. There is no allegation of fraud, suppression of facts or willful misstatement - penalty imposed under Sections 77 and 78 not sustainable – demand of tax and interest already confirmed – appeal allowed – decided partly in favor of appellant.
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