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August 2011

(2011) 22 STR 517 (Kar.) — Commissioner of Service Tax, Bangalore v. Vee Aar Secure

By Puloma Dalal, Jayesh Gogri
Chartered Accountants
Reading Time 1 mins
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Penalty — Non-payment of service tax in respect of security services — Bona fide belief that head office was paying service tax — separate registration obtained and entire tax paid with interest before issue of SCN when pointed out by Department — No intention to evade — Case for waiver of penalty made out.

Facts:
The appeal was preferred by the Revenue against the order of the Appellate Tribunal cancelling the order passed by Revisional Authority levying penalty. The assessee, a security agency, was operating in India at more than one place. The assessee was under the impression that their head office at Delhi paid the service tax on a demand issued to the assessee. On realising that the head office had not paid the service tax, the assessee got themselves registered at Bangalore and paid the service tax and interest thereon for the delayed payment.

Held:
It was held that there was no intention on part of the assessee to avoid payment of service tax and no substantial question of law was involved in the appeal for consideration and accordingly a case of waiver being made out, the appeal was dismissed.

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