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2019 (7) TMI 918 - HC - Service TaxWaiver of penalty - benefit of section 80 of FA - Taxability - amount received by the petitioner as a Subcontractor - amount received by the petitioner as a Subcontractor - bonafide belief - HELD THAT:- Section 80 as it stood then provides that no penalty shall be imposed on the assessee for any failure referred in the said provisions. If the assessee proves that there was reasonable cause for the said failure. For an assessee to bring his case within the ambit and purview of a reasonable cause, the assessee will have to demonstrate that there are reasonable grounds to suggest that the amount received as a Subcontractor is not liable for the service tax. Mere assumption is not sufficient. It is not that the petitioner was guided by any opinion of an expert nor it is a case that the position of law was shaky or that petitioner was guided by some dictum of the Courts. It was merely an assumption without any sufficient cause. The same cannot be termed as a reasonable cause so as to invoke Section 80 of the Act. Penalty cannot be set aside - petition dismissed.
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