2016 (1) TMI 158

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....er B S V Murthy The appellant is engaged in the process of anodizing the aluminium frames sent to them by solar water heater manufacturers and other manufacturers. In respect of the job work undertaken for solar water heater manufacturers, the appellants were clearing the goods under their own invoices. In respect of other manufacturers, the job work challans were used since the manufacturers w....

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.... sides. 3. The learned counsel submits that the liability arose w.e.f. 16/06/2005 and the appellant being a proprietory firm, did not know the legal provisions and believed that all the products manufactured for harnessing solar energy are exempt and therefore they entertained a bona fide belief that they were not liable to service tax at all. She also submits that in respect of other goods, th....

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....e and such beliefs are only excuses made to avoid payment of taxes which are due to the exchequer. 4. I have considered the submissions made by both the sides. The question that is to be decided is whether there was reasonable cause for waiver of penalty or not. If there was no plea entertaining bona fide belief, naturally the question of taking a lenient view would not arise. It is the Governm....

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....e the penalty under Section 80 of Finance Act, 1994. In my opinion, having regard to the fact that appellant is a proprietory firm, undertaking a single activity of iodization and in view of the fact that for the Solar water heater, they were not following any procedure and raising invoice, I consider this is a fit case for waiver of penalty. Several decisions were cited by both the sides and I ha....