https://www.taxtmi.com/caselaws?id=149742 Penalty under Section 78 of the Finance Act, 1994 was held unsustainable where the assessee had a reasonable cause and bona fide belief that the activity was not taxable in the manner alleged. The arrangement with the recipient institution, which supplied water, electricity, kitchen equipment, utensils, furniture and fuel, and the then-existing Tribunal view supported that belief. As the assessee had already paid service tax and interest, and the dispute remained confined to penalty, Section 80 operated to protect the assessee from penalty under Section 78. The penalty was therefore set aside. en-us Thu, 16 Sep 2010 00:00:00 +0530 Thu, 02 May 2013 18:13:24 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=149742 Penalty under Section 78 of the Finance Act, 1994 was held unsustainable where the assessee had a reasonable cause and bona fide belief that the activity was not taxable in the manner alleged. The arrangement with the recipient institution, which supplied water, electricity, kitchen equipment, utensils, furniture and fuel, and the then-existing Tribunal view supported that belief. As the assessee had already paid service tax and interest, and the dispute remained confined to penalty, Section 80 operated to protect the assessee from penalty under Section 78. The penalty was therefore set aside. Case-Laws Service Tax Thu, 16 Sep 2010 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=149742