TMI Blog2017 (3) TMI 1293X X X X Extracts X X X X X X X X Extracts X X X X ..... ble commercial activity. It is clear from the bylaws of the society which clearly stipulates about net profit - there is no justification to hold the appellant as anything other than commercial entity. It is clear that the appellants did not provide the required details and come forward with full facts during the course of audit during subsequent inquiry conducted by the department. Even at the time of filing regular ST 3 return, the appellant did not show the full gross amount received from the clients for providing taxable service. Considering these facts as recorded in the impugned order, the demand is sustainable for the full period. Penalties - Held that: - there is reasonable cause for non payment of Service tax during the mater ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ivities relating to their welfare. They are not involved in commercial activities and cannot be considered as commercial concern . Even after amendment of tax entry in 2006, service tax liability will not arise for them as they are not involved in providing any taxable service. Learned Counsel also submitted that their assessee is run by retired service personnel and there can be no allegation of fraud, collusion etc. invoking extended period of demand as well as imposing penalties under various sections. He prays for setting aside the penalties invoking provisions of section 80 of the Finance Act, 1994. He also submitted that they have provided these services mainly to various Government departments, corporations and RBI and they did not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l and we find no ground in the present appeal to interfere with the findings. Similarly, the appellants are covered for tax liability for the whole period of demand is clear from their legal status and financial accounts to the effect that they are, infact, involved in profitable commercial activity. It is clear from the bylaws of the society which clearly stipulates about net profit. We find no justification to hold the appellant as anything other than commercial entity. Similarly, the value for tax purpose has to be the gross amount received by the appellant from their clients is a well settled legal position in terms of section 67 of the Finance Act, 1994. The Valuation in respect of security agency services has been subject matter of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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