TMI Blog2019 (2) TMI 477X X X X Extracts X X X X X X X X Extracts X X X X ..... nterest thereof, penalty is not to be imposed - the entire tax liability with interest has already been discharged. Penalty u/s 76, 77 and 78 - Held that:- During the period in question, appellant herein may have entertained a bonafide that tax is not payable as per the correspondence with M/s Western Coalfields Limited, has made out the case for invoking section 80 of Finance Act, 1994 - penalties imposed under sections 76, 77 & 78 are set aside. Appeal disposed off. - Appeal Nos. ST/587/2009, ST/639/2009 - A/31543-31544/2018 - Dated:- 1-11-2018 - Mr. M.V. RAVINDRAN, MEMBER (JUDICIAL) And Mr. P.V. SUBBA RAO, MEMBER (TECHNICAL) Shri V. Raghuraman, Advocate for the Appellant. Shri Pawan Kumar Agarwal, Asst. Commissioner/A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... excavation for the purpose of mining activity including hiring of equipments which would be covered under the category of mining services . He would submit that this view was taken by the Tribunal in the case of SMS Infrastructure Ltd. [2017(47) S.T.R. 17 (Tri.-Mumbai)]. On the question of penalty, it is his submission that similar issue came up before the Tribunal Bangalore in the case of Ganta Ramanaiah Naidu vs. CCE Guntur [2015(39) S.T.R. 835 (Tri.- Bang.)] and submits that the Bench reproduced all the correspondence entered with the Coal Fields as regards the demand of service tax and has held that the entire issue is of classification, but declined to go into specific, but dropped the penalties imposed by the authorities. It is his ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lved at this juncture would be of a academic nature and did not record any findings; holding that having discharged the liability and the interest thereof, penalty is not to be imposed. We find that the same view needs to be applied in the case in hand inasmuch that the entire tax liability with interest has already been discharged. 6. As regards the penalty imposed, we find that the provisions of Section 80 was invoked in the case of Ganta Ramanaiah Naidu vs. CCE Guntur and the same ratio will be applicable in the case in hand. Accordingly, holding that during the period in question, appellant herein may have entertained a bonafide that tax is not payable as per the correspondence with M/s Western Coalfields Limited, has made out the ca ..... X X X X Extracts X X X X X X X X Extracts X X X X
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