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2017 (1) TMI 304 - AT - Service TaxRenting of Immovable Property Service - demand of tax, interest and penalty - section 80 - Bonafide belief - The appellant has claimed that tax liability does not arise on the ground that since the appellant was indebted, their entire factory got attached and in order to pay the bank loan amount, they rented out factory to another sugar factory and they being under bonafide belief that such renting would not amount to services rendered under the category of ‘Renting of Immovable Property’, did not discharge the Service Tax liability. Held that: - the appellant has discharged the entire Service Tax liability on being pointed out by the authorities; they are also liable to pay interest; the interest was paid by the appellant on direction of the Tribunal. We find that this is a fit case for invoking the provision of Section 80 of the Finance Act, 1994 to set aside the penalty imposed on the appellant under Section 80 of the Finance Act, 1994 - tax and interest upheld - penalty set aside - appeal allowed - decided partly in favor of assessee.
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