2011 (2) TMI 744

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..... r short) is engaged in providing services under the category of "Business Auxiliary Services". There was delay in payment of service tax during the period from April 2006 to June 2006 and July 2006 to Aug 2006 by 268 days and 176 days respectively and ST-3 return for the period April 2006 to Sept 2006 was also filed late by 180 days. A show cause notice was issued on 25.4.2008 which culminated int .....

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..... de the issue afresh with following observation :-     "10. This Court in the Tax Appeal No.1367 of 2009 has taken the view that on a conjoint reading of sections 76 and 80 of the Act, it is not possible to envisage a discretion as being vested in the authority to levy a penalty below the minimum prescribed limit. If the authority imposing the penalty is not entitled to levy below t .....

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..... sion to reduce it, the appeal filed by the Revenue has to succeed. In this case, the penalty was reduced from Rs.88,800/- to Rs.25,000/- but as per Section 76 of Finance Act, 1994, penalty has to be either Rs.88,800/- or Nil, if it is considered that Mehta had shown reasonable cause and therefore, discretion to waive penalty could be exercised. In this case, only Revenue is in appeal against the o .....

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