TMI Blog2017 (9) TMI 230X X X X Extracts X X X X X X X X Extracts X X X X ..... respondent against confirmation of service tax demand held that the respondent are liable to pay service tax as an outdoor caterer, but set aside the penalty. The respondent are liable to pay service tax as “Outdoor Caterer” during the material period - there are reasonable causes for non-payment of service tax during the material time. Accordingly, it is fit case for invoking Section 80 for non-imposition of penalties under Section 76 and 78 - appeal allowed - decided partly in favor of assessee. - Service Tax Appeals Nos.1729/2011 and 244/2012 (DB) - ST/A/55713-55714/2017-CU[DB] - Dated:- 2-8-2017 - Shri S. K. Mohanty, Member (Judicial) And Shri B. Ravichandran, Member (Technical) Rep. by Shri Sanjay Jain, DR for the appella ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... espondent squarely falls under the taxable category. The findings of the Commissioner (Appeals) to the effect that the respondent is not, in any way, engaged in supply of food items as they are only selling the food items at a subsidized rate fixed by the client, is completely mis-placed and not relevant to the issue at hand. The activities, as explained by the impugned order itself, will show that the respondents are clearly covered by the tax entry. Regarding imposition of penalties both under Section 76 and 78 and also regarding demand for extended period, ld. AR submitted that there is no ground for bonafide belief and also during the material time, imposition of penalties under both the sections are legally sustainable as held by the H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Indian Coffee Workers Co-op. Society Ltd. 2014 (34) STR 546 (Allahabad), examining the appeal filed by the respondent against confirmation of service tax demand held that the respondent are liable to pay service tax as an outdoor caterer. However, the Hon ble Allahabad High Court set aside the penalty under Section 78. 6. Following the ratio of the Hon ble Allahabad High Court in respondent s own case, in similar set of facts, we hold that the respondent are liable to pay service tax as Outdoor Caterer during the material period. However, considering the facts and circumstances of the case, we find that there are reasonable causes for non-payment of service tax during the material time. Accordingly, it is fit case for invoking Sec ..... X X X X Extracts X X X X X X X X Extracts X X X X
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