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TMI Blog2013 (11) TMI 1457X X X X Extracts X X X X X X X X Extracts X X X X ..... .f.August, 2010. Law was already on the statute book. Therefore everyone was expected to know the law. Question of existence of bonafide belief as provided under section 80 of the Finance Act, 1994 does not come to their rescue. If registration was taken on their own and service tax would have been deposited thereon even at the time of booking of flats, question of bonafide belief would have come into play. There is nothing on record to show that they have made any effort to know about liability of service tax or approached department for any clarification. It was only after visit of the departmental officers, appellants got themselves registered - penalty reduced to equal to fifty percent of service tax due as provided under the first prov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... admitted that the service tax registration is required and service tax is to be paid against the payment received for booking of studio apartments and applied for service tax registration and assured to pay due service tax after getting the registration number. Show cause notice was issued dated 4.5.2012, which was adjudicated by the adjudicating authority vide Order-in-Original NO.20/Addl/Commr/2012-13 dated 30.8.2012. The adjudicating authority appropriated the amount of deposited service tax and interest and imposed penalty of Rs.6,47,860/- under section 76 78 of Finance Act, 1994 for evasion of service tax demand. 3. Being aggrieved with the Order-in-Original dated 29.8.2012 passed by the Additional Commissioner, Customs, Central E ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lant were ignorant of the changes made in the Service Tax Law, although it does not absolve them of their tax liability. 5. Ld.DR appearing for the Revenue submits that the respondents have not made any effort to seek registration, file return and pay their duties until the Central Excise Officers visited their premises on 16.8.2011 and started enquiring about the payment of service tax due upon them. The service tax has been deposited by them only after the enquiry was conducted by the department, thus, ingredient of mens-rea is there and penalty is imposable upon them under section 78 of Finance Act, 1994. He refers to the decision of Commissioner (Appeals) in the case of K. Shashidhar Shenoy-2006 (2) STR 499 (Commr.Appl.), wherein the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... accounts would be termed as non-fraud case and lenient view would be taken for adjudicating all such cases. Further, as per section 80(1) of the Finance Act, 1994, Notwithstanding anything contained in the provisions of section 76, section 77 and 78, no penalty shall be imposable on the assessee for any failure referred to in the said provisions if the assessee proves that there was reasonable cause for the said failure. 7. I have gone through the facts on records and also heard both the sides. 8. This is appeal filed by the Revenue. It is clear from the facts on record that the respondents are engaged in the construction of residential complexes under section 65 (105) (zzzh) of Finance Act, 1994. On information, visit was made and it i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the statute book. Therefore everyone was expected to know the law. Question of existence of bonafide belief as provided under section 80 of the Finance Act, 1994 does not come to their rescue. If registration was taken on their own and service tax would have been deposited thereon even at the time of booking of flats, question of bonafide belief would have come into play. There is nothing on record to show that they have made any effort to know about liability of service tax or approached department for any clarification. It was only after visit of the departmental officers, appellants got themselves registered. 11. In view of above, I am not convinced with the findings of the Commissioner (Appeals) that the conduct of the assessee was ..... X X X X Extracts X X X X X X X X Extracts X X X X
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