2018 (9) TMI 1727

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....s of the present case are that the appellant is rendering taxable services under the category of Manpower Recruitment and supply Agency services covered by Section 65(68) of the Finance Act, 1994. After gathering intelligence that the assessee is providing taxable service without taking registration under Section 69 of the Act and without charging / collecting / paying service tax. Preliminary verification was done and it was found that the appellant is rendering taxable service. Thereafter the appellant, during the investigation itself, paid the service tax after collecting the same from the service recipients. Thereafter a show-cause notice was issued to the appellant proposing to demand service tax along with interst and also proposed pe....

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.... ii. Krishna Murari Gupta Vs. CCE&ST, Jaipur-I [2016(44) STR 682 (Tri. Del.)] iii. CST, Bangalore Vs. Motor World [2012(27) STR 225 (Kar.)] iv. Infinity Credit Vs. CCE, Jaipur [2009(16) STR 61 (Tri. Del.)] v. Gurwinder Kaur Vs. CCE, Ahmedabad [2011(24) STR 667 (Tri. Ahmd.)] vi. A.S. Patel Vs. CST, Ahmedaad [2009(15) STR 36 (Tri. Ahmd.)] vii. CCE, Kanpur Vs. Pradeep Enterprises [2009(16) STR 419 (Tri. Del.)] viii. CCE, Kanpur Vs. J.R. Singh [2009 (16) STR 484 (Tri. Del.)] 5. On the other hand, the learned AR defended the impugned order and submitted that appellant has suppressed the material fact that he is rendering taxable service and did not pay the service tax and also did not ge....

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....as taken a view that after there is an honest belief founded on reasonable grounds that the assessee is not liable to pay service tax but pay the service tax if the Department intervened and demanded service tax, then in those situations, the Tribunal should take liberal view and give him the benefit under Section 80 of the Finance Act, 1994 and should drop the penalties under Sections 76, 77 & 78. The Tribunal in the case of Infinity Credit cited supra, in identical circumstances, held that there are sufficient causes for the appellant in entertaining doubt that they were not liable to pay the service tax especially when the service tax was recently introduced and the Tribunal by invoking the provisions of Section 80 of the Finance Act, ha....