2018 (9) TMI 1727

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....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 penalties under Sections 76, 77 and 78. After f....

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....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 get the registration which shows that he has suppressed the material facts with intent to evade the payment o....

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....ble 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, has set aside the various penalties imposed on the appellant. In the facts and circumstances of the present case ....