2010 (9) TMI 270

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....p;  Whether the penalty under Section 76 & Section 78 of the Finance Act, 1994 can be dropped without invoking and/or fulfilling the requirements under Section 80 of the Finance Act, 1994? (ii)    Whether the Tribunal, in law was entitled to come to a conclusion regarding the unawareness regarding tax liability/bona fide on the face of the fact that they had collected Service Tax, without finding of fact on this behalf and when this is a case of intentional evasion of service tax? 2. The respondent was engaged in providing taxable services under the category of "manpower recruitment or supply agency" as defined under Section 65(68) of the Finance Act, 1994 (the Act) as amended from time to time. A show cause ....

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.... of service tax. However, insofar as the question of levy of penalties under Sections 76 and 78 of the Act is concerned, the Tribunal, upon appreciation of evidence on record, was of the view that the assessee was under a bona fide belief that the service rendered by the assessee was not covered by the definition of "manpower recruitment or supply agency" as defined under the Act and that as such the assessee could not be blamed if he thought that the service rendered by him would not fall under the said category of services. The Tribunal, accordingly, was of the view that this was a fit case for invoking the provisions of Section 80 of the Act and to take a lenient view as regards the penalties imposed under Sections 76 and 78 of the Act a....