Stay abreast with the latest developments in the professional domain along with in-depth analysis through the monthly BCA Journal. Get access to an engaging library of researched publications from the BCAS stable.
Learn MoreExplore past issues of BCA Journal & indulge in a treasure trove of high-quality professional content across format of print, videos & learning events from the BCAS stable.
Learn More
Facts:
The Appellant contended that he was under a bonafide belief that service tax was supposed to be paid by the service provider in case of GTA services. Further, on being pointed out by the department, Service tax liability under reverse charge mechanism was paid immediately. The revenue argued that since the liability was not contested, extended period of limitation was rightly invoked and the pertinent reason for failure to pay service tax was ignorance, which was not a reasonable cause to waive off penalties.
Held:
The Appellant was a proprietorship concern and not supported by any professional person. Layman would generally believe that service tax has to be paid by service provider. Further, service tax was paid immediately with interest on detection. Accordingly, having regard to the promptness and peculiar circumstances of the case, penalty u/s. 78 of the Finance Act, 1994 was set aside by invoking provisions of section 80 of the Finance Act, 1994.
