https://www.taxtmi.com/caselaws?id=32924 Penalty under Section 78 was considered unwarranted where service tax and interest were paid before the show cause notice and the assessee showed reasonable cause for the default. The original authority accepted that confusion over classification supported a bona fide belief and exercised discretion to waive penalty under Section 80. The Tribunal noted that similar cases had already upheld non-imposition of penalty on comparable facts and found no justification for disturbing that discretion through review. The review order imposing penalty was therefore unsustainable, and the waiver of penalty was maintained in favour of the assessee. en-us Wed, 02 Jul 2008 00:00:00 +0530 Tue, 21 Apr 2009 14:32:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=32924 Penalty under Section 78 was considered unwarranted where service tax and interest were paid before the show cause notice and the assessee showed reasonable cause for the default. The original authority accepted that confusion over classification supported a bona fide belief and exercised discretion to waive penalty under Section 80. The Tribunal noted that similar cases had already upheld non-imposition of penalty on comparable facts and found no justification for disturbing that discretion through review. The review order imposing penalty was therefore unsustainable, and the waiver of penalty was maintained in favour of the assessee. Case-Laws Service Tax Wed, 02 Jul 2008 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=32924