TMI Blog2012 (8) TMI 437X X X X Extracts X X X X X X X X Extracts X X X X ..... aiver from service tax on such services during the period 16.6.2005 (Date on which Notf 28/2005-ST took effect) to 23.6.2005 (Appellant started paying service tax from 24-06-2005). As during the period 15-06-2005 to 23-06-2005, the appellant was not able to collect taxes from the customers cannot a reason to waive the liability or to consider that the appellant had bonafide belief that tax was not payable for the said period, thus the extended period of time can be invoked in this case. Invocation of Section 80 - Held that:- Considering the legislative history of notifications like notification 28/2004-ST dated 17-09-2004, 9/2005-ST dated 03-03-2005 and 28/2005-ST dated 07-06-2005 and Notification 29/2005-ST dated 15-07-2005 would j ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es, the services were to be reckoned as exported if the property was situated abroad. In the second category, the services were reckoned as to be exported if the services were performed outside India. For this category if services were partly performed outside India, it was to be considered that the service was performed outside India. In the case of a third category of services, the services were to be considered as exported if the recipient of the services was located outside India. 3. It is agreed that transportation of goods by air was specified in the second category in the said rules, that is to say if the services were partly performed outside India it was to be considered as exported. In the case of transportation of goods by a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the issue of such notification. The reason that similar exemption was in force some time in the past is no reason to consider it to be a clarification in nature. Exemption notifications cannot be considered to be retrospective unless the legislature specifically provides so. So we do not see any merit in this new argument. 5. Thus the appellants could not get waiver from service tax on such services during the period 16.6.2005 (Date on which Notf 28/2005-ST took effect) to 23.6.2005 (Appellant started paying service tax from 24-06-2005). 6. However, the Revenue has confirmed the demand based on the reasoning that during the period from 15.3.2005 to 15.7.2005, that isfor the period during which the exemption as was available in Not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at all duty demand on this count is confirmed penalty on them should be waived by invoking the provisions of Section 80 of the Finance Act, 1994. He submits that the Airline Industry was corresponding with the authorities in the Finance Ministry for getting suitable exemption and they were expecting retrospective exemption and that is the reason why they did not pay the service tax. 10. The learned AR for the Revenue submits that an expectation of a retrospective exemption cannot a reason for not disclosing facts to the department and paying tax as per provisions of law in existence. The appellants did not disclose the value of such service rendered and the fact that they were receiving payments of such value of service in Indian rupe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r if there is a reason for extending the benefit of Section 80, extended period should not be invoked for demanding duty. This is only a broad rule. The very fact that Section 80 mentionspenalty under section 78 shows that in exceptional cases waiver can be granted under Section 80 even when suppression is invoked. We are of the view that the circumstances of this case and the legislative history of notifications like notification 28/2004-ST dated 17-09-2004, 9/2005-ST dated 03-03-2005 and 28/2005-ST dated 07-06-2005 and Notification 29/2005-ST dated 15-07-2005 would justify invoking section 80 of the Finance Act, 1994. So we invoke the provisions of Section 80 and waive the penalty imposed on the appellants. 12. With the result, the d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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