2016 (11) TMI 1229

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....able service under the category of "Sale of Space or Time for Advertisement" as defined under Section 65(105)(zzzm) of Finance Act 1994. Service Tax was introduced on the said category with effect from 01.5.2006. The appellant being a pubic sector undertaking of Govt of Gujarat, sought an opinion from their empanelled Tax Consultant,  M/s Talati & Talati, about the applicability of Service Tax for the services rendered by the them. On being advised by their said consultant that Service Tax is not applicable to public sector undertakings, no Service Tax was paid by the appellant. Consequently, on realization of mistake, the appellant paid the entire amount of Service Tax of Rs. 40,55,589/- with interest of Rs. 2,22,869/- on 5.7.2007 for....

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....ellant realized their mistake and paid the entire amount of Service Tax alongwith interest liability on 05.7.2007. It is his contention that there was no intention whatsoever not to discharge Service Tax by the appellant being a public sector undertaking. He also  submits that in absence of malafide intention to evade the service penalty cannot be imposed on the appellant. In support, he has referred to the decision of the Tribunal in the case of Markfed Refined Oil & Allied industries Vs. CCE, Jallender - 2008(229)ELT 557 (Tri.Del) later upheld by the Hon'ble Punjab and Haryana High Court reported as 2009(243)ELT A91(P&H). It is also his contention that the Service Tax liability was discharged within the normal period of limitation on....