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2007 (4) TMI 248 - AT - Service TaxPenalty u/s 76 & 77 architect services - appellant had not got registered himself under the belief that he is not liable to pay service tax since he has entered into a contract with the Government of Maharashtra SCN issued for imposition of penalty for non-payment of service tax and non-filing of the return contested on the ground that there was a bona fide belief since assessee had discharged entire liability before expiry of Amnesty Scheme, penalty imposed are waived
Issues:
Appeal against penalty under sections 76 and 77 of the Finance Act, 1994 for non-payment of service tax and non-filing of return. Analysis: The appellant, an architect, did not register for service tax initially due to a belief that services provided to the Government of Maharashtra were exempt. After authorities informed him of the tax liability, he registered, paid the tax, and interest. Penalties were imposed for non-payment and non-filing of returns. The appellant argued a bona fide belief and cited an amnesty scheme applicable until 31-10-2004. The appellant's advocate referenced Tribunal cases supporting the appellant's position. The appellant's advocate contended that the penalties under sections 76 and 77 were unjustified, as the appellant rectified the tax liability before the amnesty scheme deadline. The advocate argued that the tax was not collected from customers and relied on Tribunal decisions for support. The department's representative argued that the appellant, being aware of the law, should have paid the tax upon registration as an architect service provider. The Tribunal noted that the appellant cleared the tax liability and interest before the amnesty scheme's expiration, granting relief from penalties. Citing previous Tribunal decisions, the Tribunal found the penalties unwarranted and set aside the order, allowing the appeal with any consequential relief for the appellant. The Tribunal's decision was based on the appellant's compliance with the amnesty scheme and the lack of justification for the penalties under sections 76 and 77 of the Finance Act, 1994.
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