2015 (10) TMI 515

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..... ontends for restoring Section 76 penalty and states Appellants are liable for penalty under Section 77 & 78 and Commissioner (Appeals) has no discretion to reduce penalty imposed under Section 76 – Held That:- Considering the ambiguity prevailing on payment of service tax during the relevant period Appellant's contention merits justification for bonafide cause for invoking Section 80 - Reasonable cause has been established in the present case for waiver of penalties – Decided in favour of the Assessee.
R Periasami, Member (T) For the Appellant : Mr L Paneerselvam, AC (AR) For the Respondent : Mr M Karthikeyan, Adv ORDER Per R Periasami Both assessee's appeal and Revenue's appeals are taken up together as the issue arises out .....

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..... fficers visited the appellant's premises on 30.3.2004, they promptly got the registration and paid entire service tax immediately even before issue of SCN. He further submits that they are the sole proprietor for distributor of the Star TV and ESPN channels and upon pointing out by the department, they immediately took up with channel operators for reimbursement of service tax amount whereas ESPN has refused for reimbursement and Star TV agreed to reimburse the amount. Immediately on 10.6.2004, they deposited entire service tax even though ESPN refused to reimburse the service tax. Therefore, they are eligible for waiver of penalty under Section 80 of the Finance Act. Non-payment of tax during a short period due to confusion on the taxa .....

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..... ents, I find that levy of service tax on the commissions received from the TV channel operators and relates to the period 1.7.2003 to 31.5.2004. The levy of tax under BAS came into effect w.e.f 1.7.2003 vide Notification No.7/2003-ST dt. 20.6.2003. I also find that appellant on being pointed out by department on the taxability under BAS, they paid the entire service tax in spite of the fact that one of the channel operators ESPN had refused for reimbursement of service tax. Considering the ambiguity prevailing on payment of service tax during the relevant period appellant's contention merits justification for bonafide cause for invoking Section 80. In this regard, on the very same issue, this Bench of the Tribunal has been consistently .....

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