TMI Blog2024 (2) TMI 1311X X X X Extracts X X X X X X X X Extracts X X X X ..... Tax during the relevant period supported by evidences. Ignorance of law or belief of non-applicability of Service Tax to the services rendered for a long duration of five years cannot be considered as a reasonable cause nor difficulty in arranging working capital be considered as sufficient reason for non-payment of Service Tax during the relevant period. Cumulatively, it is not a fit case to invoke Section 80 of the Finance Act; hence, the penalty imposed by the learned Commissioner cannot be interfered with. The impugned order is upheld and the appeal is dismissed. - HON'BLE DR. D. M. MISRA , MEMBER ( JUDICIAL ) And HON'BLE MRS. R. BHAGYA DEVI , MEMBER (TECHNICAL) For the Appellant : Mr. Akbar Basha, CA For the Re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rging Service Tax for rendering such services during the said period. It is the understanding of the appellant that the activities undertaken by them being works contract service, hence not taxable. Later on realisation that the services rendered by them fall under the taxable category, accordingly they have registered with the department and commenced payment of Service Tax wherever the Service Tax is paid by the recipient of the service. It is his contention that the Service Tax so collected are meticulously deposited with the Government but wherever Service Tax was not paid by their clients, the same was not deposited with the Government. Further, he has submitted that all the transactions were duly recorded in the books of accounts and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the facts with intent to evade payment of duty by way of not filing returns with the department thereby not disclosing the services rendered by them. Accordingly, he has confirmed demand for the extended period of limitation and imposed penalty under Section 78 of the Finance Act, 1994. 5. Heard both sides and perused the records. The short issue involved in the present appeal for consideration is whether equivalent penalty imposed under Section 78 of the Finance Act, 1994 is justified or otherwise, and Section 80 be invokable. 5.1 Resisting the imposition of penalty, the learned CA for the appellant has submitted that even though they have rendered taxable services under the category of Erection, Commissioning and Installation du ..... X X X X Extracts X X X X X X X X Extracts X X X X
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