TMI Blog2017 (9) TMI 456X X X X Extracts X X X X X X X X Extracts X X X X ..... ission of the returns belatedly on payment of late fee. The mandate of Section 70(1) states that this section will come into play when an assessee is liable to pay service tax - In the case in hand, it is seen from the records that the appellant has bonafide belief not paid the service tax and informed department on 08.02.2008, expressing that he is not liable to pay the service tax - there is no demand for service tax on the appellant, despite the fact that he had obtained service tax registration certificate from the Department and was discharging the service tax liability up to March, 2007. Penalties of non-filing of the returns are not sustainable - appeal allowed - decided in favor of appellant. - ST/20913/2015 - Final Order No. A/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... my attention to the fact that appellant in fact obtained service tax registration from the Department from April, 2007 onwards stopped discharging the service tax liability and by a letter dated 08.02.2008 informed the department about the same (Annexure page No. 96 of the appeal memorandum). He would draw my attention that appellant had informed the department about non-payment of service tax liability and subsequently also surrendered their service tax registration certificate. 5. Drawing my attention to Provisions of Section 70 of Finance Act, 1994 he submits it gets attracted only when the services are provided by the assessee. He would submit that they were of the bonafide belief that the retreading of tyres is a manufacturing pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... formed by the department on 08.02.2008, under a bonafide impression that his activity amounts to manufacturing, the show cause notice issued by the Revenue is only seeking for imposition of penalties under Section 70 of the Finance Act, 1994 read with Rule 7 and 7C of the Service Tax Rules. 9. In order to appreciate the correct position of law, it is required to produce the relevant portions Section 70 of Finance Act, 1994. Section 70 Furnishing of returns: (1) Every person liable to pay the service tax shall himself assess the tax due on the services provided by him and shall furnish to the Superintendent of Central Excise, a return in such form and in such manner and at such frequency and with such late fee not exceeding twen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e service tax. In the entire records, I find that there is no demand for service tax on the appellant, despite the fact that he had obtained service tax registration certificate from the Department and was discharging the service tax liability up to March, 2007. If the Revenue is of the view appellant should have been penalized under Provisions of Section 70 read with Rule 7 C of Service Tax Rules, there should have been a demand of service tax for the period in question; in the absence of the demand of service tax liability on the demand it is to be held that penalties of non-filing of the returns are not sustainable. 11. In the facts and circumstances of the case. I find that the impugned order is unsustainable and liable to be set a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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