9911796707
TMI Blog2008 (12) TMI 133X X X X Extracts X X X X X X X X Extracts X X X X ..... der the category of “Banking and other financial services” - confusion prevailing about the taxability which was resolved by the clarification of the C.B.E.C. dated 25-2-2005 - appellant paid the service tax immediately after clarification - no intention to evade service tax - provisions of Section 80 is rightly invocable - while upholding the service tax demand as uncontested, penalties are set ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct of the appeal No. 425/07, the appellant paid the entire service tax involved amounting to Rs. 40,02,176/- relating to 16-7-2001 to 30-8-2004, on 24-3-2005 and the entire interest amounting to Rs. 14,22,743/- on 30-7-2005. The original authority confirmed the demand of service tax, interest and imposed penalties of Rs. 500/- under Section 75A, Rs. 200/- for every day of delay in payment under Se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 76 sustained by the Commissioner (Appeals). He also seeks setting aside of penalty under enhanced by the Commissioner. He submits that in view of uncertainty and confusion prevailing about the taxability which was resolved by the clarification of the C.B.E.C. dated 25-2-2005, this is a fit case for invoking the provisions of Section 80. 5. Learned D.R. reiterated the findings of the Commissio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the matter was referred to C.B.E.C. for clarification, who, after consulting the Ministry of Law, issued a clarification dated 25-2-2005 stating that the same is liable to service tax under the head "Banking and other financial services." 7. In the facts and circumstances mentioned above, we hold that there is sufficient cause on the part of the appellant in failure to pay the service tax an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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