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TMI Blog2019 (7) TMI 722X X X X Extracts X X X X X X X X Extracts X X X X ..... ce Act, 1994 and waived the penalty u/s 80 ibid which was imposed u/s. 78 ibid. 2. The respondent is engaged in construction of residential building/ complex at Navi Mumbai. As per the department, when the intelligence wing of the revenue searched the premises of the respondent on 23.2.2012 they came to know that the respondent although received advances from prospective flat buyers since 1.7.2010, but they did not pay any service tax on such advances during the financial years 2010-11 and 2011-12. They noticed that the respondent took the service tax registration belatedly on 31.1.2012. Upon being pointing out by the revenue, the respondents calculated the amount of service tax and paid an amount of Rs. 28,30,446/- towards service tax 1. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 018 upheld the Order-in-Original to the extent of service tax liability and interest. However penalties of Rs. 5,000/- u/s. 77 and Rs. 30,36,669/- u/s. 78 were waived under Section 80 ibid. The relevant paragraphs viz. paras 8 and 9 of the aforesaid order are as under:- "8. Regarding the other penalties imposed, in view of the proceedings in the matter before the hon'ble the Bombay High Court on account of the levy of service tax on builders, the interim order issued, and the final decision taken by the Bombay High Court, it is seen that there were genuine reasons for not filing returns or obtaining registration by the appellant. However, it is seen that the appellants have paid the Service Tax of Rs. 29,77,682/-on 01.03.2012 immediately ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 'ble High Court of Judicature at Bombay regarding constitutional validity of the levy of service tax on Builders and Developers, in which the Hon'ble High Court vide interim order dated 23.7.2010 directed that no coercive steps will be taken against the developers for recovery of service tax in relation to the provision in question. Therefore they neither took service tax registration nor paid any service tax. The said writ petition was finally decided by the Hon'ble High Court on 20.1.2012 by which the Hon'ble High Court dismissed the writ petition and upheld the constitutional validity of the relevant provision. As soon as the writ petition was dismissed, the respondent took service tax registration without wasting any time on 31.1.2012 a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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