2012 (11) TMI 652

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..... nder section 76, section 77 and section 78 of the Act, when the respondent did not prove any reasonable cause for their failure to comply with the provisions mentioned in section 80 of the Act. In the absence of any reasonable cause and when the case involves suppression of facts, whether waiver of aforesaid penalties by invoking section 80 of the Act was legal and correct? (2) Whether the order of the Tribunal is legally sustainable, in view of erroneous findings and misinterpretation of statutory provisions?" 2. The respondent-assessee, which is engaged in the manufacture of Hot Rolled Steel Plates and Coils, etc. imported various capital goods and raw materials like Plant and Machinery, HR Steel Coils and Steel Slabs etc. Along with th .....

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..... ring, the learned counsel for the assessee stated that the assessee does not dispute the demand of service tax and interest. The Tribunal, after considering the submissions advanced by the respective parties, was of the view that the assessee had shown reasonable cause for the failure referred to under the said provisions as contemplated under section 80 of the Act and set aside the penalties. 4. Mr. Darshan Parikh, learned Senior Standing Counsel for the appellant, assailed the impugned order by submitting that the provisions of section 80 of the Act can be invoked only if the assessee proves that there was reasonable cause for such failure. In the present case the assessee had not disputed the service tax liability and interest in respec .....

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..... nder the category of "Intellectual Property Rights Services". It is in the light of the aforesaid observations that the Tribunal found the assessee had shown reasonable cause for failure to discharge its service tax liability and was therefore, entitled to relief under section 80 of the Act. 6. Thus, the Tribunal on a consideration of the overall facts of the case has found that reasonable cause as envisaged under section 80 of the Act has been shown by the assessee for failure to discharge its service tax liability. As to whether or not reasonable cause has been made out is a question of fact. The Tribunal on the facts of the case has found that sufficient cause has been made out. Such view of the Tribunal is a plausible view and cannot b .....

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