9911796707
TMI Blog2018 (8) TMI 818X X X X Extracts X X X X X X X X Extracts X X X X ..... . As appellant is not paying service tax and not filing Service Tax Returns, in that circumstances, the appellant failed to prove the bonafide belief that the service recipient are paying service tax. In fact, if service recipient is paying the service tax on behalf of the appellant, then also under Section 77 also the appellant is required to file their ST-3 returns which appellant failed to do. Penalty - Held that:- The demand of service tax was of ₹ 8,49,855/-. Against the said demand, the appellant paid an amount of ₹ 19.35,580/- which shows that appellant was diligent to pay service tax. Therefore, the said act of the appellant warrants no penalty is imposable on the appellant - penalty u/s 78 set aside - As appella ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h interest and penalty was also imposed. The said order was challenged before the ld. Commissioner (Appeals) who considered the contention of the appellant and hold that the appellant is liable to pay service tax on the actual receipt of the amount not on best judgement assessment and accordingly, the demand service tax alongwith interest was confirmed and the penalty on the appellant was also imposed. Against the said order, the appellant is before me. 3. Ld. Counsel appearing for the appellant submits that the appellant is educated upto 12th standard and his age is about 70 years. It is the contention that the appellant was under bonafide belief that the service recipient has to pay service tax on their behalf and therefore appellant d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... de belief that their service recipient has to pay service tax is not acceptable as there is no written agreement between the appellant and the service recipient. Moreover, the appellant never enquired from the service recipient whether they are discharging service tax liability on behalf of the appellant or not? Further, as per Section 77 of the Finance Act, 1994 if the appellant is providing taxable service, the appellant is required to file Service Tax returns. As appellant is not paying service tax and not filing Service Tax Returns, in that circumstances, the appellant failed to prove the bonafide belief that the service recipient are paying service tax. In fact, if service recipient is paying the service tax on behalf of the appellant, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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