TMI Blog2015 (1) TMI 232X X X X Extracts X X X X X X X X Extracts X X X X ..... t it is a case of payment of duty voluntarily at the time of investigation even prior to issuance of show cause notice. Therefore, the Tribunal went on to invoke the provisions of Section 80 of the Act on the ground of reasonable cause. - On a careful consideration of the documents as submitted by parties and also on a careful perusal of the reasoning of the Tribunal, this Court finds that the reasoning of the Tribunal is based on parameters of Section 80 of the Act and, therefore, this Court finds no necessity to interdict the decision of the Tribunal granting relief to the petitioner under Section 76 of the Act by invoking the provisions of Section 80 of the Act - Decided against Revenue. - C.M.A. No. 1737 of 2009 - - - Dated:- 11-12-20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce on 27.10.04. However, the show cause notice, besides demanding duty, proposed levy of interest under Section 75, penalty under Sections 75-A, 76 and 77 of the Finance Act, 1944. The case was agitated and order was passed imposing penalty of ₹ 500/- under Section 75-A, penalty of ₹ 200/- per day under Section 76 and ₹ 2000/- under Section 77 were levied. Aggrieved by the said order, the assessee preferred appeal before the Commissioner (Appeals). 3. In the said appeal, the penalty under Section 77 was reduced to ₹ 1000/- from ₹ 2000/- and penalty of ₹ 500/- under Section 75 was confirmed. In respect of penalty of ₹ 200/- per day levied under Section 76, the same was reduced to ₹ 100/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ay service tax in accordance with the provisions of section 68 or the rules made under this Chapter, who fails to pay such tax, shall pay, in addition to such tax and the interest on that tax amount in accordance with the provisions of section 75, a penalty which shall not be less than [one hundred rupees] for every day during which such failure continues or at the rate of [two per cent.] of such tax, per month, whichever is higher, higher, starting with the first day after the due date till the date of actual payment of the outstanding amount of service tax: Provided that the total amount of the penalty payable in terms of this section shall not exceed the service tax payable in terms of this section shall not exceed [fifty per cent of] ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shall be available only if the amount of penalty so determined has also been paid within the period of thirty days referred to in that proviso: Provided also that in case of a service provider whose value of taxable services does not exceed sixty lakh rupees during any of the years covered by the notice or during the last preceding financial year, the period of thirty days shall be extended to ninety days. (2) Where the service tax determined to be payable is reduced or increased by the Commissioner (Appeals), the Appellate Tribunal or, as the case may be, the court, then, for the purposes of this section, the service tax as reduced or increased, as the case may be, shall be taken into account: Provided that in case where the servi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the President. 7. A careful perusal of the order of the Tribunal would reveal that 'Reasonable cause' as provided under Section 80 of the Act has been recorded by the Tribunal stating that the respondent assessee had fallen into financial crisis on account of the criminal breach of trust committed by their sub-agent and criminal proceedings were initiated against such persons and the same are pending. In addition to the above, the Tribunal also came to hold that it is a case of payment of duty voluntarily at the time of investigation even prior to issuance of show cause notice. Therefore, the Tribunal went on to invoke the provisions of Section 80 of the Act on the ground of reasonable cause. 8. On a careful consideration o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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