9911796707
TMI Blog2010 (8) TMI 213X X X X Extracts X X X X X X X X Extracts X X X X ..... lty imposed on the ground of non-payment of service tax and suppression/mis-declaration - Held that:- Board had issued clarification vide circular No. 87/05/2006-S.T., dated 6-11-2006 with regard to liability of service tax, on free services given by the authorized dealers and charges reimbursed by the vehicle manufacturers and commission received by the auto dealers for introducing customers to s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Appellant is an authorized service station. On being asked by the department that they are required to pay service tax on the amounts received by them as an incentive from the banks as DSA/DSTs, PDI charges from Bajaj Auto and reimbursement for free services rendered by them to Bajaj Auto, appellants paid the full amount of service tax amounting to Rs. 3,36,297/-. However, subsequently show c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s held that when the CBE C issued a circular clarifying the doubts, intention to evade service tax cannot be attributed. He submits that he is not challenging the liability of service tax but in view of the bona fide belief of the appellants, penalties imposed on the appellant under Section 77 and 78 of Finance Act, 1994 may be set aside. On the other hand learned DR submits that appellants inte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... alty. I find that this is a fit case for applying the provisions of Section 80 of Finance Act, 1994 and waiver of penalty imposed under Section 78 of Finance Act, 1994. Since penalty under Section 77 is imposed for violation of provisions and it does not require the department to prove suppression of facts or intention to evade duty etc., I feel that penalty under Section 77 need not be set-aside. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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