TMI Blog2011 (4) TMI 484X X X X Extracts X X X X X X X X Extracts X X X X ..... lure - That being the initial period of levy of service tax, there was lot of confusion in the field and it can be safely concluded that there was no malafide on the part of the assessee - Mere failure on the part of the assessee to get themselves registered with Service Tax Department to pay service tax by itself cannot be considered to be a malafide on the part of the assessee - Appeal is dispos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e present appeal. 2. Learned Advocate appearing for the appellant submits that he is not disputing the confirmation of service tax against them, which already stands paid by them alongwith interest even prior to issue of show cause notice. However, he submits that the challenge in the present appeal is only to imposition of penalty under sections 76, 77 78 of the Finance Act, 1994. He submit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ervice tax, as a good citizen they immediately agreed to pay service tax right from 1.7.2004 onwards, even they had not collected the same from the students. He further submits that though the show cause notice was issued for the period from 1.7.2004 to 31.3.2006, the demand is partly barred by limitation but the appellant never choose to contest the same on the said ground and immediately deposit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s that it is not a case for invocation of provision of section 80. 5. After appreciating the submissions of both sides, we find that in terms of section 80, no penalty is to be imposed on the assessee for any failure referred to in the Act, if the assessee shows that there were reasonable causes for such failure. Such reasonable causes have to be covered from the facts and circumstances of a p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tax Department to pay service tax by itself cannot be considered to be a malafide on the part of the assessee. If the contention of the learned DR is accepted, then no case under section 80 can be granted relief. 6. In view of the foregoing discussions, we are of the view that non payment of service tax by the appellant is on reasonable cause thus meriting invocation of section 80. We accordi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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