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TMI Blog2018 (4) TMI 1505X X X X Extracts X X X X X X X X Extracts X X X X ..... rges - Held that: - this plea is a reasonable one and the benefit should be extended to the assessee - matter remanded to adjudicating authority who shall rework the demand giving benefit of cum tax to the assessee. Penalties u/s 78 - Held that: - The assessee being a local self-government running for the welfare of the public cannot be said to have any intention of suppressing facts to evade p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Though the said activity falls under the category of Renting of Immovable Property Services, the assessee had not registered with the department and had not discharged service tax liability. Show cause notices were issued proposing to demand the service tax along with interest and also for imposing penalties. After due process of law, the original authority confirmed the demand, along with intere ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mitted that appellant is a municipality and had not collected service tax from the tenant as the municipality was not aware that the services were taxable. Being an arm of the Government, the municipality cannot be saddled with intention to evade payment of tax. As they were not aware that the services were taxable they have not collected service tax along with rent / lease charges. Therefore the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (Appeals) has set aside penalties imposed. The Tribunal in the case of CCE Madurai Vs Aruppukkotai Municipality in Appeal No. ST/41113/2017 vide Final Order No.41355/2017 dt. 28.7.2017 had considered the issue of waiver of penalty imposed under Section 78 on the municipality. The assessee being a local self-government running for the welfare of the public cannot be said to have any intention of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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