https://www.taxtmi.com/caselaws?id=34740 Penalties under Sections 76 and 78 of the Finance Act, 1994 were held unsustainable where service tax on warranty-related free services had been paid and the assessees had not collected tax initially under a bona fide belief that no tax was payable. The issue involved genuine doubt on taxability, later clarified by the Board through Circular No. 87/05/2006-ST dated 06.11.2006, so Section 80 was treated as applicable for penalty waiver. Relief was granted and the penalties were set aside. en-us Fri, 28 Aug 2009 00:00:00 +0530 Thu, 12 Aug 2010 12:40:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=34740 Penalties under Sections 76 and 78 of the Finance Act, 1994 were held unsustainable where service tax on warranty-related free services had been paid and the assessees had not collected tax initially under a bona fide belief that no tax was payable. The issue involved genuine doubt on taxability, later clarified by the Board through Circular No. 87/05/2006-ST dated 06.11.2006, so Section 80 was treated as applicable for penalty waiver. Relief was granted and the penalties were set aside. Case-Laws Service Tax Fri, 28 Aug 2009 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=34740