TMI Blog2017 (8) TMI 399X X X X Extracts X X X X X X X X Extracts X X X X ..... al Shipowners Association on 11.12.2008 [2008 (12) TMI 41 - BOMBAY HIGH COURT]. There has been sufficient cause for the appellant in his failure to discharge tax liability and as such the beneficent provisions of section 80 could be very well invoked in this case so as to waive the penalties imposed under section 76 and 78 of the Finance Act - apeal allowed - decided in favor of appellant. - ST/191/2008 - 41498/2017 - Dated:- 28-7-2017 - Ms. Sulekha Beevi C.S., Member (Judicial) And Shri Madhu Mohan Damodhar, Member (Technical) Shri R. Parthasarathy, Advocate for the Appellant Shri K.P. Muralidharan, AC (AR) for the Respondent ORDER Per Bench Brief facts are that based on intelligence received by officers of DGC ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... / parties became taxable under reverse charge mechanism after introduction of Section 66A in the Finance Act, 1994 and the Hon ble High Court of Bombay in the case of Indian National Shipowners Association Vs. Union of India as reported in 2009 (13) STR 235 (Bom) has held that such services are taxable only with effect from 18.4.2006. He added that the appellant having paid the entire service tax demand, is not contesting the service tax demand and is contesting only the imposition of penalties. Though in the show cause notice, department has alleged suppression, there is no basis for the same. It is vaguely alleged in the show cause notice that appellant had incurred liability to pay service tax on certain lending services received by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the findings in the impugned order. He adverted to the statement recorded and submitted that the issue would not have come to light but for the investigation conducted by DGCEI. The loan agreement revealed that the appellant has paid agency fee as well as arrangement fee to the foreign financial institutions for ECBs. The appellant have paid service tax along with interest only when the same was pointed out by the department. Therefore, the penalties imposed are sustainable. 4. Heard both sides. 5. The learned counsel for the appellant has submitted that they are contesting the penalties imposed only. The period involved is February 2007. The demand of service tax is on the fee paid by appellant to foreign institutions for arranging ..... X X X X Extracts X X X X X X X X Extracts X X X X
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