https://www.taxtmi.com/caselaws?id=353174 Penalty under the Finance Act, 1994 was found unsustainable where service tax and interest were paid during investigation and before issue of the show-cause notice. The assessee's bona fide belief that the activity was not taxable, supported by decisions favourable to its case, meant suppression with intent to evade tax was not established. On that basis, the penalty was dropped, and the earlier demand confirmation did not justify penal action in the absence of the requisite mens rea. en-us Wed, 06 Dec 2017 00:00:00 +0530 Fri, 29 Dec 2017 15:23:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=353174 Penalty under the Finance Act, 1994 was found unsustainable where service tax and interest were paid during investigation and before issue of the show-cause notice. The assessee's bona fide belief that the activity was not taxable, supported by decisions favourable to its case, meant suppression with intent to evade tax was not established. On that basis, the penalty was dropped, and the earlier demand confirmation did not justify penal action in the absence of the requisite mens rea. Case-Laws Service Tax Wed, 06 Dec 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=353174