TMI Blog2012 (8) TMI 751X X X X Extracts X X X X X X X X Extracts X X X X ..... ervice Tax from other clients who were not willing to pay - Service Tax liability is upheld - re-quantification of Service Tax liability by adopting cum-tax benefit in respect of cases where Service Tax has not been collected - The interest liability is also upheld on the re-quantified Service Tax liability - penalty imposed under Section 78 is set aside - amount already paid shall be adjusted towards the Service Tax liability and interest so re-quantified. - ST/95/2010 - 582/2011 - Dated:- 9-9-2011 - Shri M. Veeraiyan, J. REPRESENTED BY : Shri S. Loknath, CA, for the Appellant. Shri M.M. Ravi Rajendran, JDR, for the Respondent. [Order (Oral)]. This is an appeal against the order of the Commissioner (Appeals) No. 418/20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tal turnover during the year 2005-06 was only Rs. 3,50,501/- and that turnover during the year 2006-07 was only Rs. 3,32,291/- and the turnover during the year 2007-08 was only Rs. 5,71,899/-. The said turnovers were well within the exemption limit of Rs. 4 lakh/Rs. 8 lakh available to small scale service providers during the said years. The appellant, a former police officer, provided the services mainly to spend his time usefully and was not familiar with the Service Tax law. Even though he was eligible for full exemption during three years viz., 2005-2006 to 2007-08, not knowing the same, he has collected the Service Tax from the clients who were willing to pay and paid the same to the department and availed the exemption only in respect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oth sides and perused the records. Apparently the services have been rendered by a retired police officer who was not familiar with the law relating to Service tax. Ignorance of law is no doubt an excuse for not paying Service tax. However, in the present case, in respect of three financial years viz. , 2005-06 to 2007-08, the appellant was eligible for availing full exemption from Service Tax in terms of Notification No. 6/2005-S.T., dated 1-4-2005. It is a clear case of ignorance in not opting to avail this exemption. This in my opinion is a sufficient cause for invoking the provisions of Section 80 of the Finance Act. The appellant has chosen to collect Service Tax from parties who were willing to pay the tax and paid the same to the dep ..... X X X X Extracts X X X X X X X X Extracts X X X X
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