https://www.taxtmi.com/caselaws?id=433493 The court set aside the penalty imposed under Section 78 on the appellant, a Public Sector Enterprise, for failing to charge service tax initially due to lack of knowledge. The court found that the appellant's actions upon realizing the tax liability, including issuing a supplementary invoice and promptly paying the tax upon receiving payment, demonstrated good faith and lack of intent to evade tax. Emphasizing transparency and compliance shown through proper record-keeping, the court concluded that the penalty was not warranted as the default was not deliberate but stemmed from a lack of awareness, ultimately ruling in favor of the appellant. en-us Tue, 24 Jan 2023 00:00:00 +0530 Wed, 01 Feb 2023 08:55:05 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=433493 The court set aside the penalty imposed under Section 78 on the appellant, a Public Sector Enterprise, for failing to charge service tax initially due to lack of knowledge. The court found that the appellant's actions upon realizing the tax liability, including issuing a supplementary invoice and promptly paying the tax upon receiving payment, demonstrated good faith and lack of intent to evade tax. Emphasizing transparency and compliance shown through proper record-keeping, the court concluded that the penalty was not warranted as the default was not deliberate but stemmed from a lack of awareness, ultimately ruling in favor of the appellant. Case-Laws Service Tax Tue, 24 Jan 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=433493