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TMI Blog2009 (11) TMI 193X X X X Extracts X X X X X X X X Extracts X X X X ..... y have not paid service tax for the services rendered under the category of 'Advertisement/Broadcasting Service, Internet Service and Multi System Operator Service'. The appellants contested the show-cause notice on the ground that they have already paid an amount of Rs. 3.2 lakhs before issue of show-cause notice. The adjudicating authority after due process of law confirmed the service tax amount of Rs. 7,59,799 and Education Cess of Rs. 15,196 under section 73(1) of Finance Act, 1994 and appropriated the amounts already paid by the appellants. It is the submission that the entire service tax amount has already been paid before the adjudication proceedings. The adjudicating authority invoked the provisions of section 80 of the Finance Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of the submissions made by both sides and perusal of the records, I find that while coming to the conclusion that penalty needs to be imposed under sections 76 and 78 of the Act, the Commissioner in his Review Adjudication Order has held that : "The adjudicating authority/Assistant Commissioner had invoked the extended proviso of section 73 of the Act for the entire amount mentioned therein (Annexures I to III) refers. Once the extended period of limitation under section 73 had been invoked to recover the service tax amount not paid/evaded, as a legal consequence the penal provisions under section 76 and section 78 of the Act get attracted. In the present case, the adjudicating authority did not prove any "reasonable cause" so as to invo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ections 76 and 78 of the Act does not carry the case of revenue any further as section 80 specifically starts with the wordings "notwithstanding" sections 76 and 78 of the Act. I find that the reason given by the appellant seems to be acceptable. I find that the issue is now settled in favour of the appellant by decision of the Hon'ble High Court of Punjab and Haryana in the case of Darmania Telecom (supra). I reproduce the ratio of the said decision as under :— "2. Having heard learned counsel for the revenue we are of the view that the provisions of section 80 of the Act in un-mistakable terms provide that despite the provisions of section 78, no penalty should be imposed on the assessee for any failure referred in that section if the as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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