https://www.taxtmi.com/caselaws?id=75657 Penalties under the Finance Act, 1994 were found unsustainable where the assessee had already paid service tax and interest before the show cause notice and the levy position remained doubtful during the material period. The activity involved commission received by authorised motor vehicle dealers for introducing customers to banks and non-banking financial companies, which was later clarified as taxable by circular. In those circumstances, the settled view applied that prior payment of tax and interest, combined with genuine uncertainty on taxability, does not justify penal action. The penal consequences were therefore set aside while the tax and interest payments remained undisturbed. en-us Mon, 13 Jul 2009 00:00:00 +0530 Tue, 04 May 2010 00:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=75657 Penalties under the Finance Act, 1994 were found unsustainable where the assessee had already paid service tax and interest before the show cause notice and the levy position remained doubtful during the material period. The activity involved commission received by authorised motor vehicle dealers for introducing customers to banks and non-banking financial companies, which was later clarified as taxable by circular. In those circumstances, the settled view applied that prior payment of tax and interest, combined with genuine uncertainty on taxability, does not justify penal action. The penal consequences were therefore set aside while the tax and interest payments remained undisturbed. Case-Laws Service Tax Mon, 13 Jul 2009 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=75657