TMI Blog2015 (11) TMI 529X X X X Extracts X X X X X X X X Extracts X X X X ..... ecipient is Government of India undertaking. - appellant has explained the reason for failure to make service tax payment and without contest admittedly paid service tax and subsequently they discharged interest and penalty of ₹ 24,000/- under Section 77. I am therefore of the considered view that appellant have shown reasonable cause for non payment of service tax. Therefore in terms of Section 80 of the Finance Act, 1994, the appellant deserves waiver of penalty. I therefore waive the penalties imposed under Section 76 and 78 - However, demand of service tax , interest and penalty of ₹ 24,000/- under Section 77 confirmed by the Commissioner(Appeals) stand upheld - Decided partly in favour of assessee. - Appeal No. ST/86195/13 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment that appellant is not contesting the service tax, interest and penalty of ₹ 24,000/- already paid, their contest is only on penalties imposed under Section 76 and 78. 3. Ld Counsel submits that service tax demand is exclusively on the service provided to M/s. Hindustan Aeronautics Ltd. which is Government of India undertaking. Services were provided under a contract. As per contract there are no norms regarding the service tax therefore they were under bonafide belief that these services are not liable for service tax. He further submits that since services were provided to M/s. Hindustan Aeronautics Ltd., it cannot be with malafide intention. He submits that partner Shri. Shri. Mahesh Pawar in his statement before the investi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s Government undertaking company. The services have been provided under the legal contract and as per the contract there was no terms of service tax liability and the same was not pointed out by the service recipient i.e. Government of India undertaking. In view of this fact it is clear that in non payment of service tax there cannot be intension for evasion of service tax, particularly when recipient is Government of India undertaking. The partner, Shri. Mahesh Pawar of the appellant firm in his statement stated as under: On being asked as to my business activity, I say that my main business is to provide services of commercial or industrial buildings and civil structure, repair and maintenance services to different clients which inclu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issued by the clients, which indicate the amounts paid to us and the TDS amounts. I shall produce photocopies of contracts entered into between my firms and M/s. HAL MES within a week s time. Further I fully agree to pay the service tax which is unpaid and I shall pay the same with interest as may be applicable. I wish to inform you that due to financial crunch, I may please be given some more time to arrange for the funds for tax payment. I shall present myself before you at the specified date and time alongwith the documents/information as called for. I have nothing further to state at this time. From the above statement, it is clear that appellant has explained the reason for failure to make service tax payment and without co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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