2018 (2) TMI 402

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..... peals) observing that it is sufficiently established that reasonable cause is made out by the appellant for non-payment of service tax during the disputed period. This was because there was much confusion as to whether installation charges and carriage fees are to be subjected to levy of service tax - penalty set aside by invoking section 80. Appeal allowed in part. - ST/305/2009 - 42250/2017 .....

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..... enalties. Hence, this appeal. 2. On behalf of the appellant, Ld. Counsel Shri S. Venkatachalam submitted that the appellant has discharged the service tax liability on the subscription fees collected from the customers but did not discharge service tax on installation charges collected as these are not includible in the total taxable value of the service. The appellant would be eligible for the .....

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..... h installation charges. Further, the issue whether the carriage fees paid by NDTV would fall within the definition of cable operator s service was also doubtful. The appellant had immediately paid the service tax amount as well as the interest on being pointed out by the department. After making such payment, SCN has been issued by invoking the extended period alleging suppression of facts. Apart .....

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..... been a doubt on the side of the appellant but however, the appellant has failed to disclose the carriage fees received from NDTV and therefore is guilty of suppression of facts and that the penalties imposed is legal and proper. 4. Heard both sides. 5. On perusal of records as well as the submissions made by both sides, we do not find any ground to accept the contention put forward by the Ld .....

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..... instead of waiving penalties, has only reduced the same. The appellant was paying service tax and filing returns. Section 80 provides for waiving of penalty and not for reducing the penalty. In view thereof, we are of the considered opinion that the penalties imposed are unwarranted. The impugned order is modified to the extent of setting aside the penalties imposed under Sections76, 77 78 of t .....

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