2017 (7) TMI 725

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....artment. They are also registered with the Service Tax Department under the category of Goods Transport Agency Service . The appellant paid freight for the transport service received by them and are liable to pay service tax under reverse charge mechanism. During the disputed periods, they failed to discharge service tax under the GTA service for which show cause notices were issued. After due process of law, the original authority confirmed the demand of service tax along with interest and imposed equal amount of penalty both under sections 76 and 78 apart from imposing penalty of Rs. 1,000/- under Section 77 of the Finance Act, 1994. In appeal, Commissioner (Appeals) upheld the demand of service tax along with interest and penalty imposed....

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....at the authorities below have imposed penalty both under sections 76 and 78 which is unwarranted. He pleaded that there was much confusion with regard to the payment of service tax under reverse charge mechanism for GTA service during the relevant period and also with regard to the liability of the abatement. Further, during the period, there was a dispute whether the recipient of GTA service is liable to pay service tax when the services are provided by individual truck owners. That the appellant failed to discharge service tax only for these reasons since the issue was contentious. He pleaded that the penalties maybe waived. 5. The learned AR Shri S. Govindarajan reiterated the findings in the impugned order. 6. We have heard the su....