TMI Blog2008 (4) TMI 150X X X X Extracts X X X X X X X X Extracts X X X X ..... on commission under bona fide belief that impugned service is not taxable - there was a confusion in the trade about leviabiity of tax on such activity - After the Board’s Circular dated 6.11.06, the appellant voluntarily deposited the tax before issue of SCN – penalty is not justified - ST/32/2008-SM(BR) - 878/2008-SM(BR) - Dated:- 11-4-2008 - Shri P. K. Das, Member (Judicial) (Final Ord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ice Tax is leviable on such activity. Accordingly, the Appellant paid the tax on 6.2.2007 and paid interest on 19.3.2007. The Adjudicating Authority confirmed the demand of tax and appropriated the amount as deposited by them and also imposed penalty tinder Sections 76, 77 and 78 of the Finance Act, 1994. The Commissioner (Appeals) upheld the Adjudication Order. 2. Ld. Counsel on behalf of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er, 2006 and they paid the tax on 6.2.2007. Therefore, the imposition of penalty on various Sections of the Act is justified. 4. After hearing both the sides and on perusal of the records, it is revealed from the Board's Circular dated 6.11.2006 that there were certain doubts have arisen in respect of activities undertaken by authorised motor vehicle dealers and service stations and as t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y them from the Financial Institutions. It is seen that there was a confusion in the trade about leviabiity of tax on such activity. After the Board's Circular dated 6.11.2006, the appellant voluntarily deposited the tax before issue of the show cause notice. The Tribunal in the case of Vipul Motors (P) Ltd. (supra) held that penalty is not imposable for delay of payment of tax on the busi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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