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2016 (12) TMI 339 - AT - Service TaxDemand of tax with interest and penalties - amounts received by appellant from various financial institutions for organizing customers to secure loan for vehicles from those Institutions - appellant has already discharged the service tax liability and interest thereof - Held that - Since the appellant has already discharged the service tax liability and the interest thereof on the taxability of the amount received from the financial institutions under Business Auxiliary Service , we upheld the same. As regards the penalties, it is correctly pointed by learned Consultant as the issue was being disputed and had to be settled by the Larger Bench, we find that this is a fit case to invoke the provisions of Section 80 of the Finance Act, 1994. By invoking the provisions of Section 80 of the Finance Act, 1994, we set aside the penalties imposed on the appellant. Appeal allowed - decided in favor of appellant-assessee.
Issues:
Demand of service tax, interest, and penalties on amounts received for organizing customers to secure loans from financial institutions. Analysis: The appeal addressed the demand of service tax, interest, and penalties on amounts received by the appellant for organizing customers to secure loans for vehicles from financial institutions. The appellant had already discharged the service tax liability and interest. The main contention was the waiver of penalties imposed solely on the grounds that during the relevant period, the taxability of the amounts received from financial institutions was in dispute and awaited a decision by the Larger Bench. The learned Counsel for the appellant did not dispute the tax liability and interest but sought the waiver of penalties. On the other hand, the learned D.R. reiterated the findings of the lower authorities. After considering the submissions from both sides and perusing the records, the Tribunal upheld the service tax liability and interest on the amounts received from financial institutions under "Business Auxiliary Service." Regarding the penalties, the Tribunal acknowledged that the issue was being disputed and was pending settlement by the Larger Bench. In light of this, the Tribunal invoked the provisions of Section 80 of the Finance Act, 1994, and set aside the penalties imposed on the appellant. The appeal was disposed of accordingly, with the penalties being waived under Section 80 of the Finance Act, 1994.
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