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TMI Blog2018 (9) TMI 1727X X X X Extracts X X X X X X X X Extracts X X X X ..... edge about the service tax provisions and that his activity is liable to service tax as the said service was newly brought under the Service Tax regime - Tribunal in various cases has taken a view that after there is an honest belief founded on reasonable grounds that the assessee is not liable to pay service tax but pay the service tax if the Department intervened and demanded service tax, then in those situations, the Tribunal should take liberal view and give him the benefit under Section 80 of the Finance Act, 1994 and should drop the penalties under Sections 76, 77 & 78. The Tribunal in the case of Infinity Credit [2009 (3) TMI 22 - CESTAT, NEW DELHI], in identical circumstances, held that there are sufficient causes for the appell ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hout taking registration under Section 69 of the Act and without charging / collecting / paying service tax. Preliminary verification was done and it was found that the appellant is rendering taxable service. Thereafter the appellant, during the investigation itself, paid the service tax after collecting the same from the service recipients. Thereafter a show-cause notice was issued to the appellant proposing to demand service tax along with interst and also proposed penalties under Sections 76, 77 and 78. After following the due process, the Commissioner confirmed the demand and also appropriated the amount of tax paid before the issuance of showcause notice. Aggrieved by the same, appellant filed the present appeal. 3. Heard both sides ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vi. A.S. Patel Vs. CST, Ahmedaad [2009(15) STR 36 (Tri. Ahmd.)] vii. CCE, Kanpur Vs. Pradeep Enterprises [2009(16) STR 419 (Tri. Del.)] viii. CCE, Kanpur Vs. J.R. Singh [2009 (16) STR 484 (Tri. Del.)] 5. On the other hand, the learned AR defended the impugned order and submitted that appellant has suppressed the material fact that he is rendering taxable service and did not pay the service tax and also did not get the registration which shows that he has suppressed the material facts with intent to evade the payment of service tax. He further submitted that ignorance of law is no excuse. He further submitted that the Commissioner has rightly imposed penalties under various provisions after holding that appellant has suppressed the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Finance Act, 1994 and should drop the penalties under Sections 76, 77 78. The Tribunal in the case of Infinity Credit cited supra, in identical circumstances, held that there are sufficient causes for the appellant in entertaining doubt that they were not liable to pay the service tax especially when the service tax was recently introduced and the Tribunal by invoking the provisions of Section 80 of the Finance Act, has set aside the various penalties imposed on the appellant. In the facts and circumstances of the present case also, we are of the considered view that since the appellant has paid the service tax before the issuance of the show-cause notice and he had no intention to evade the payment of service tax. Therefore under these ..... X X X X Extracts X X X X X X X X Extracts X X X X
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