TaxTMI 
TaxTMI 
2019 (2) TMI 878
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....015. As per the department, during the course of investigation they found that the Appellant failed to obtain Service Tax registration for providing such taxable service and also failed to pay service tax as well as filling of periodical ST-3 Returns during the year 2010-2011 and 2012-2013. Accordingly a Show Cause-cum-demand notice dated 20.10.2015 was issued to the Appellant and the same was served on the Appellant in the month of November, 2015 for demanding Service Tax amounting to Rs. 1,55,223/- with interest and penalty under Sections 76, 77, & 78 of the Finance Act, 1994. The said Show Cause Notice was Adjudicating upon and order-in-original dated 22/03/2017 was passed confirming the demand of interest and penalty under section 77 an....
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....er and submitted that the Appellant has failed to obtain the Service Tax Registration for providing the taxable service of "rent-a-cab" within stipulated time frame and this shows his intention to evade the payment of service tax. He further submitted that the Appellant has suppressed the material fact for providing taxable service to their client from department, with an intention to evade payment of service tax liability and therefore the penalty under Section 77 and 78 ibid has been rightly imposed upon the Appellant. He also submitted that it has been laid down by the Hon'ble Supreme Court in catena of decisions that mandatory penalties are imposable even if duty is paid prior to issuance of Show Cause Notice. 6. It is not disputed tha....
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....atue with effect from/w.e.f. 14/05/2015 therefore during the period of dispute in this matter, it was very well in operation. The relevant extract of this said section is read as under: "80 (i) notwithstanding anything contained in the provisions of Section 76, Section 77 or Section 78, no penalty shall be imposable on the assesee for any failure referred to in the said provisions, if the assessee proves that there was reasonable cause for the said failure." In terms of the aforesaid section an assesee can plead for waiver of imposition of penalties levied under Sections 76, 77 & 78 of the Act if he is able to demonstrate a "reasonable cause" for non-payment of service tax. "Reasonable Cause" means an honest belief founded upon reasonabl....