9911796707
TMI Blog2012 (11) TMI 652X X X X Extracts X X X X X X X X Extracts X X X X ..... perty Rights Services". Thus, the Tribunal found that reasonable cause as envisaged under section 80 has been shown by the assessee for failure to discharge its service tax liability. As to whether or not reasonable cause has been made out is a question of fact. No substantial question of law so as to warrant interference - in favour of assessee. - TAX APPEAL NO. 654 OF 2012 - - - Dated:- 11-10-2012 - AKIL KURESHI AND MS. HARSHA DEVANI, JJ. Darshan M. Parikh for the Appellant. ORDER Ms. Harsha Devani, J. - This is an appeal at the instance of the Department against the order dated 03.02.2012 passed by the Customs, Excise Service Tax Appellate Tribunal (hereinafter referred to as "the Tribunal"), wherein the foll ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rd with the Service Tax Department. According to the Department the purchase of the drawings and designs by the assessee was nothing but transfer of intellectual property rights to the assessee. After investigation and calling for the records from the assessee, a show cause notice dated 20.08.2008 came to be issued to the assessee demanding service tax under the category of "Intellectual Property Rights Services" under the provisions of section 73 of the Finance Act, 1994 (hereinafter referred to as "the Act"), interest and penalties under sections 76, 77 and 78 of the said Act. 3. The assessee contested the show cause notice. However, the Commissioner confirmed the demand of service tax to the tune of Rs. 3,91,89,370/- under section 73(1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lishment can have a bonafide belief which can be termed as a reasonable cause for failure to discharge their service ax liability. It was, accordingly, urged that the Tribunal was not justified in holding that reasonable cause has been shown by the assessee for the purpose of setting aside the penalties. 5. As can be seen from the impugned order, the Tribunal has noted that the assessee has paid the entire amount of service tax liability along with interest prior to issuance of the show cause notice and has not disputed the liability to pay service tax and interest. The Tribunal on an appreciation of the material on record was of the view that the assessee held a bona fide belief that it was liable to pay customs duty on the drawings and ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
