TaxTMI 
TaxTMI 
2009 (1) TMI 216
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....d in which they stated that they were letting out banquet halls and conference halls for business meetings, training and conference but no separate charges were recovered in respect of banquet halls and conference halls as the charges were included in the room rent. They have fixed yearly business contracts with their customers under package deals in which the package charges was dependent upon the services availed i.e., breakfast, lunch etc. all of which were included in the room rent. They stated that they were paying service tax in respect of banquet halls let out for marriage functions but since banquet halls given for business meetings was a part of package and was not separately charged for, they were under the impression that no Serv....
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....es should not be imposed under sections 76, 77 and 78 of the Finance Act, 1994. This show-cause notice was adjudicated by Commissioner who held that penalties were imposable and imposed penalty of Rs.100 per day subject to maximum of Rs.1,03,856 under section 76, penalty of Rs. 2,07,712 under section 78 and penalty of Rs. 5,000 under section 77 of the Act. 3. Ld. Advocate for the appellant submitted that show-cause notice issued by Commissioner itself is improper as it cannot go beyond the facts narrated in the original show-cause notice in exercise of its revisional power. He instead of acting as Revision authority, has acted as original authority as is evident from the fact that the order issued by him is titled as order-in-original and ....
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....h inter alia include use of banquet halls for which no separate charges are recovered also form part of convention services and it was on account of lack of knowledge and trained staff that the service tax was not paid out of ignorance. Commissioner in his order has nowhere brought out the facts on the basis of which he has arrived at a finding that service tax was not paid by suppressing facts with intent to evade duty. He referred to the decision of Tribunal in the case of Ram Krishna Travels (P.) Ltd. [2008] 17 STT 54 (Trib.-Mum.) wherein it was held that in absence of any evidence on record relating to suppression of facts, bona fide belief is a reasonable cause under section 80 of Finance Act, 1994. Attention was also invited to the La....
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....rightly imposed. 6. I have considered the submissions. 7. I am in agreement with the plea taken by the appellant that the original show-cause notice nowhere brings out the facts on the basis of which it has been concluded that the activity of providing convention services was suppressed by the appellant with intention to evade duty. These words are totally missing and not to be found in the original show-cause notice. Therefore the show-cause notice issued by Commissioner clearly goes beyond the original show-cause notice as allegation of suppression was not there in the show- cause notice as entire show-cause notice nowhere says that facts were suppressed with intent to evade duty. Mere invocation of section 78 would not suffice for the ....