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TMI Blog2010 (11) TMI 861X X X X Extracts X X X X X X X X Extracts X X X X ..... 6 of the Finance Act, 1994 can be reduced below the minimum limit prescribed? (ii) Whether the penalty under Section 76 of the Finance Act, 1994 can be dropped without invoking Section 80 of the Finance Act, 1994? 2. The respondent is a holder of Service Tax Registration under Section 69 of the Finance Act, 1994 (the Act) under the category of "Maintenance and Repair service". The respondent filed service tax returns late by 414 days and 329 days respectively. The respondent had also short paid interest of Rs. 118/- for the period October, 2006 to December, 2006. A show cause notice therefore, came to be issued to the respondent proposing to recover interest of Rs. 118/- under Section 75 and for imposition of penalties un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly, 2010 in Tax Appeal No. 1367 of 2009 [2010 (257) E.L.T. 37 (Guj.) = 2010 (19) S.T.R. 641 (Guj.)] to submit that the controversy in issue stands concluded by the said decision in favour of the Revenue. 5. Despite service of notice for final disposal, there is no appearance on behalf of the respondent-assessee. In the circumstances, Admit. The following substantial question of law arises for determination :- "Whether the penalty under Section 76 of the Finance Act, 1994 can be reduced below the minimum limit prescribed by invoking Section 80 of the Finance Act, 1994?" 6. From the facts noted hereinabove, it is apparent that the Commissioner (Appeals) had reduced the penalty imposed under Section 78 of the Act by resorting to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enalty below the minimum prescribed. The Court accordingly answered the question in the negative. 7. The aforesaid decision would be squarely applicable to the facts of the present case wherein the Commissioner (Appeals) had educed the penalty below the minimum prescribed by resorting to the provisions of Section 80 of the Finance Act, which has been confirmed by the Tribunal. In the circumstances, following the said decision, the question is accordingly answered in the negative. The penalty under Section 76 of the Finance Act, 1994 cannot be reduced below the minimum prescribed by invoking Section 80 of the Finance Act, 1994. 8. In the light of the aforesaid, the appeal is accordingly allowed in the following terms. The impugne ..... X X X X Extracts X X X X X X X X Extracts X X X X
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