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TMI Blog2012 (7) TMI 257X X X X Extracts X X X X X X X X Extracts X X X X ..... he bonafide belief that Service Tax is not applicable to them as they were providing services of rent-a-cab operator to another rent-a-cab operator and not to clients directly as per circular of CBEC bearing F. No. B 43/7/97-TRU dated 11.07.97. During the course of audit of their records, on being asked they could not produce evidence that the rent-a-cab operator to whom they were providing service, had paid the service tax during the said period. Consequently, on the objection of the audit, they paid the service tax for the said period.The interest on the said service tax, however was paid over a period of time but before completion of adjudication proceeding. Subsequently, they were issued with a show cause notice on 17th October, 2007 pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r bonafide impression that the service of rent-a-cab provided to another rent-a-cab operator who ultimately rendered the said service in turn to their clients must have paid the service tax, they have failed to discharge service tax during the relevant period. Further, he submitted that when it was pointed out by the audit party, they immediately paid the entire service tax as they could not produce sufficient evidence of payment of service tax by the other rent-a-cab scheme operator. Their approach all along have been bonafide and hence no penalty is imposable on them and Ld. Commr.(Appeal) has rightly invoked section 80 of the Finance Act, 1994. 4. Heard both sides and perused the records. I find that the respondent had paid the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ditional Commissioner's denial of benefit on the ground of non-segregation of amount fortifies the reason of their bonaflde belief that their service was not taxable. The Additional Commissioner did not show any reason why the appellant's appeal and grounds for invocation of section 80'could not be given any cognizance to. He also did not discuss why the ratio of the judgments cited by the appellant was not applicable in the facts and circumstances of the case. I find that although the appellant did not dispute the tax liability in the personal hearing, their reason of formation of bonafide belief cannot be turned down. I also find that they paid the tax and interest when non-applicability of the said notification was pointed out to them wi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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