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2015 (7) TMI 189 - AT - Service TaxPenalty u/s 70 & 78 - whether, in the facts and circumstances of the case, penalties under Sections 70 and 78 should be imposed or otherwise - Held that:- Commissioner (Appeals) has very consciously considered the facts of the case, interpreted the terms 'reasonable cause' and came to the conclusion that there is a reasonable cause for the respondent in non-payment of service tax at the relevant time and, therefore, exercising the power vested in him, he set aside the penalties. As regards the reliance of the Revenue on the hon'ble apex Court judgment in the case of Dharmendra Textile Processors (2008 (9) TMI 52 - SUPREME COURT ), it is relevant to the penalties imposed under Section 11AC of the Central Excise Act, 1944. However, in the present case, the penalties are under Sections 70 and 78 of the Finance Act, 1994. As regard these penalties there is a clear provision under Section 80 of the Finance Act, 1994 wherein the power is vested in the authority to consider the waiver of penalty on satisfaction of 'reasonable cause' for non-payment of service tax. - there is no infirmity in the order of the learned Commissioner (Appeals) and the same does not require any interference. The impugned order is upheld. - Decided against Revenue.
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