TMI Blog2009 (3) TMI 143X X X X Extracts X X X X X X X X Extracts X X X X ..... re of the applicability of the service tax. They have also not collected the tax from the said company. However, they have deposited the tax as soon as it came to their knowledge. The Commissioner (Appeals) extended the benefit of Section 80 of the Act as the respondents proved that there was a reasonable cause for the said failure. It is also noted that the respondent deposited the tax with inter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ower services to the said Company. In response to the summon dated 14.03.2006 the proprietor of the respondent admitted that they were supplying manpower to the said company. He also stated that he had no knowledge of the applicability of the service tax on such activities. Thereafter, the respondent obtained service tax registration and paid the service tax of Rs. 4,32,352/- vide TR-6 Challan dat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ause and, therefore, imposition of penalty is justified. He relied upon the decisions of the Tribunal as under:- (a) HI-TECH Calibration Centre Vs. CCE, Coimbatore 2006 (2) S.T.R. 357 (Tribunal-Chennai) (b) Continental Advertising Services Vs. CCE, Kolkata-I 2006 (1) S.T.R. 191 (Tribunal-Kolkata) 4. After hearing the ld. DR and on perusal of the records, I find that respondents ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g Services (supra), the Tribunal held that in certain case, tax was deposited 10 times less than the actual liability of the tax and penalty is imposable. In the present case, the respondent provided the services to M/s. Goodlass Nerolac Paints Ltd. on the basis of the proper documents, which were duly recorded in their records. Thus, it appears that they have acted in a bona fide belief. At the r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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