TMI Blog2017 (11) TMI 290X X X X Extracts X X X X X X X X Extracts X X X X ..... in these circumstances, appellant had a bona fide belief that they are not liable to pay service tax, but thereafter they paid the same - the appellants are entitled for the benefit of Section 80 of the Finance Act, 1994 and by resorting to Section 80, penalty u/s 77 and 78 waived - But as far as interest liability is concerned, the appellants are liable to pay the interest as per the provisions c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 06/2007 to 31/12/2009. Since the service tax was not paid by the appellant, show-cause notice was issued and vide the Order-in-Original, service tax of ₹ 4,15,043/- including cess was confirmed with interest. Penalty under Sections 77 and 78 of the Finance Act, 1994 was also imposed. aggrieved by the said order, appellant filed appeal before the Commissioner(Appeals) and the same was dism ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rvice has been a matter of legal dispute since inception as evidenced by the ruling of the Honble High Court of Delhi in the case of Home Solution Retail India Ltd. Vs. UOI [2009(14) STR 433 (Del.)] and the matter is still pending in the Hon ble Supreme Court of India. The learned counsel further submitted that the appellant has paid the service tax and is not liable to pay interest and penalty ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Section 80 of the Finance Act, 1994 and by resorting to Section 80, I waive the penalty under Sections 77 and 78. But as far as interest liability is concerned, the appellants are liable to pay the interest as per the provisions contained in Section 75 of the Finance Act, 1994. Accordingly, appeal is partly allowed. Penalties are set aside and interest liability is confirmed. (Operative por ..... X X X X Extracts X X X X X X X X Extracts X X X X
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