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2016 (8) TMI 893 - AT - Service TaxImposition of penalty under section 78 of the Finance Act, 1994 respondent entered in a contract for Site Formation, Clearance and Excavation Services work further sub-contracted by respondent confusion regarding the liability of service tax - service tax paid by respondent when demanded and thereafter penalty imposed section 80 of the finance act, 1994 Held that: - the category having been introduced recently on the services in question, there was a lot of confusion and chaos in the field, giving a bonafide belief to the assesee that there would not be any tax liability on him. The actual services was duly provided by sub-contractor and he was discharging the full service tax liability. In such a scenario, the assesse's stand that they were under a bonafide belief that no tax liability would fall upon them as the same stands discharged by the sub-contractor is required to be appreciated in which case, the provisions of section 80 of the Finance Act, 1994 would get invoked no penalty imposed appeal disposed off decided against Revenue.
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