2019 (9) TMI 413

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.... Shri. M. Karthikeyan, Advocate for the Appellant Shri. B. Balamurugan, Authorized Representative for the Respondent ORDER By this appeal, the assessee is challenging the penalties levied and confirmed under Sections 76 and 77 of the Finance Act, 1994. 2.1 Brief facts leading to this appeal that are relevant, are the appellant is in charge of the Municipal Administration and Water D....

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....and 24/2018 dated 08.02.2018 confirmed the service tax demands along with appropriate interest under Section 75 of the Finance Act, 1994, penalty under Section 76 of the Finance Act, 1994 apart from penalty of Rs. 5,000/- under Section 77 (2) of the Finance Act, 1994. Aggrieved by the orders of the lower adjudicating authority in so far as the imposition of penalties under Sections 76 and 77 of th....

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....n be no issue as to suppression of any facts and that too, with an intent to evade any tax. Further, I find that though the activity of renting of building is not a statutory function, the building has been rented to earn revenue to perform the statutory functions entrusted on the appellant under Article 243W of the Constitution of India. Further, the bona fide belief of the appellant can be vouch....

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....h is also due to the fact that there are contrary decisions available and that finally, it has reached the Hon'ble Supreme Court. 5.1 In view of the above, it is clear with the fact that the main issue of taxability on the Renting of Immovable Property itself being under litigation, the ingredients of Section 76 of the Finance Act, 1994 can be assumed to be absent, for levying penalty. Therefor....