TMI Blog2010 (5) TMI 302X X X X Extracts X X X X X X X X Extracts X X X X ..... there was lot of confusion in regard to its liability to service tax which was settled by issue of Board's Circular No. 87/05/2006-S.T. dated 6.11.2006, and that even before issue of said Circular it had started paying service tax. Held that - it was a fit case for invoking section 80 and therefore, penalty imposed u/s 78 was to be set aside. - ST/390 OF 2009 - A/656 AND S/492/WZB/AHD OF 2010 - D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hen appellant came to know that he was liable to pay the service tax. Further, he also submits that there was lot of confusion in this regard and the confusion was settled only after issue of instructions by the Board vide Circular No. 87/05/2006-S.T., dated 6-11-2006. He submits that even before the circular was issued appellant started paying service tax which shows that there was no mala fide i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order. He submits taking all these factors into account a lenient view as regards penalty may be taken and provisions of section 80 may be invoked for this purpose. Learned DR on the other hand submits that penalty under section 78 of the Finance Act, 1994 is mandatory and this is not a fit case for invoking provisions of section 80 of the Finance Act, 1994. 3. I have considered the submissions ..... X X X X Extracts X X X X X X X X Extracts X X X X
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