2021-VIL-351-BOM-ST

SERVICE TAX High Court Cases

Service Tax – Non-payment of service tax - Penalty under Section 76 of the Finance Act, 1994 - Non-payment of service tax due to uncertainty in the law - Reasonable cause for failure to pay the duty - uncertainty in the law or mens rea to evade tax - While Tribunal granted the relief qua the penalty imposed under Section 78 the same benefit was not extended to the penalty imposed under Section 76 – assessee appeal against Tribunal order – HELD – the Section 80 for the Finance Act begin with a non-obstante clause and nevertheless anything contained in Sections 76, 77, 78 and 79, preclude imposition of penalty on the assessee - the appellant is justified in his belief and he was supported by a reasonable ground to the effect that he was not liable to pay the service tax on cost of material used in rendering photography services. The benefit of this belief for him is receiving a favourable consideration at the instance of the Tribunal while granting the relief qua the penalty imposed under Section 78 – there is no reason why the said benefit cannot be extended to the penalty imposed under Section 76, since both the Sections are to be read along with Section 80, which gives an overriding effect over Sections 76 to 78 - The impugned order passed by the Tribunal, to the extent which debar the appellant from payment of penalty under Section 76 is quashed and set aside - the penalty imposed on the appellant under Section 76 of the Finance Act is set aside and writ petition is allowed

Quick Search

/

Advance Search

Create Account



Log In



Forgot Password


Please Note: This facility is only for Subscribing Members.

Email this page



Feedback this page