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TMI Blog2018 (9) TMI 90X X X X Extracts X X X X X X X X Extracts X X X X ..... ons stated by the appellant that as per advice of their service recipient they were under bonafide belief that the services are not taxable, do not appears to be satisfactory - the appellant could not make out a case of reasonable cause for non-payment of service tax. Reliance on the provisions of Section 73(3) - Held that:- This is clear from the fact of non-payment of service tax and the payment of service tax along with interest was made only after detection by the department. Moreover, the extended period was invoked on the ground of suppression of facts, therefore, as per sub-Section (4) of Section 73, the benefit of Section 73(3) is not available to the appellant. Also, the penalty was rightly imposed under Section 78 by the low ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under bonafide belief that the appellant being an individual, a labour contractor does not fall under the term Commercial concern and therefore not liable to pay service tax. The service recipient M/s. Panchmahal Steel Limited also advised that the appellant being an individual, is not liable to pay service tax. It is their submission that appellant, before issuance of show cause notice paid the entire service tax along with interest, therefore, show cause notice should not have been issued in terms of Section 73(3) of Finance Act, 1994. It is their submission that whatever service tax was paid by the appellant was availed by the service recipient M/s. Panchmahal Steel Limited as Cenvat credit, therefore, it is a case of Revenue neutralit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .06.2005 and the service recipient was an excisable unit therefore, there was no reason either for the appellant or for the service recipient about ignorance from changes in the law. Therefore, the reasons stated by the appellant that as per advice of their service recipient they were under bonafide belief that the services are not taxable, do not appears to be satisfactory. As regards the judgments relied upon by the appellant, we are of the view that ingredients required for imposition of penalty under Section 78 are based on the facts of each case. Therefore, considering the facts of the present case, we are of the view that the appellant could not make out a case of reasonable cause for non-payment of service tax. Therefore, the facts o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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