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TMI Blog2010 (8) TMI 396X X X X Extracts X X X X X X X X Extracts X X X X ..... liable to pay the service tax on the extra income - Demand service tax along with interest and imposition of penalty u/s 76,77 and 78 - The appellants were aware of the fact that taxable income beyond Rs. 4 lakhs is taxable to service tax, inasmuch as they were earlier registered with the department and aware of the law - That is how they surrendered their licence by submitting that their taxable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rendered their registration by declaring that their total gross income for the year 2004-2005 was below Rs. 4 lakhs and as such, they were exempted from taxation in terms of Notification No. 06/2005-S.T., dt. 1-3-05. 3. Subsequent investigations made by Revenue revealed that their total income exceeded Rs. 4 lakhs and as such, appellant was liable to pay the service tax on the extra income. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd reduced to that extent. 4. The appellants are not challenging confirmation of duty demand, interest or penalty imposition under Section 78. They are aggrieved with the penalty of Rs. 100/- per day imposed in terms of provisions of Section 76 and penalty of Rs. 500/- imposed under Section 77 of Finance Act, 1994. It is the contention of the appellant that they were under bona fide belief a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... consequent demand of service tax. Section 80 is invokable in those cases where the assessee can show bona fide and reasonable belief on his part. Admittedly, the appellants were aware of the fact that taxable income beyond Rs. 4 lakhs is taxable to service tax, inasmuch as they were earlier registered with the department and aware of the law. That is how they surrendered their licence by submitti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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