9911796707
TMI Blog2017 (3) TMI 1158X X X X Extracts X X X X X X X X Extracts X X X X ..... tember 2002 (Appeal No.ST/35/3009) and June 1999 to September 2002 (Appeal No.ST/36/2009), but failed to Register with the Service Tax Department and discharge appropriate service tax during the said period. Consequently, when it was pointed out to them on 12.9.2002, the appellants discharged the entire amount of service tax with interest. Later, show cause notice was issued for appropriation of the service tax paid and interest, already paid and proposal for penalty under Section 75(a), 76, 77 and 78 of the Finance Act, 1994. On adjudication, the demand was confirmed and appropriated with interest and penalty under Section 76, 77 and 78 of the Act on both the appellants imposed. The appellants challenged the order before the ld. Commission ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le cause for failure to comply with the provisions of the Finance Act, 1994, is established, Section 80 could be invoked for waiver of penalty. It is his contention that the advice by the Chartered Accountant on non-applicability of service tax be considered as a reasonable cause for failure to discharge the service tax and compliance with the provisions of Finance Act, 1994. 4. Ld. A.R. for Revenue reiterates the findings of the ld. Commissioner (Appeals). 5. Heard both sides and perused the record. I find that undisputedly, the appellant was engaged in providing architect service which became taxable in the year 1998. Also, it is not dispute that they did not register and discharge their service tax liability till pointed out by the Dep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nalty can be imposed for the same failure under both the provisions. (3) Even if the ingredients stipulated in Sections 76 and 78 of the Act are established, if the assessee shows reasonable cause for such failure, then the authority has no power to impose penalty in view of Section 80 of the Act." 7. On perusal of the opinion/certificate issued by the Chartered Accountant Shri Sunil K.Mehta, I find that there was a bona fide belief harboured by the appellant in not discharging the service tax during the relevant period. Accordingly, it is a fit case for invocation of Section 80 of the Finance Act, 1994. Consequently, the impugned order is set aside in confirming the penalty on the Appellants and the appeals are allowed with consequentia ..... X X X X Extracts X X X X X X X X Extracts X X X X
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