TMI Blog2015 (1) TMI 385X X X X Extracts X X X X X X X X Extracts X X X X ..... indicates that they could not have any mala fide intention to evade payment of service tax. The second mitigating factor is that the adjudicating authority waived penalty under Section 76 by taking cover of Section 80. The reason stated by the adjudicating authority for waiving the penalty under Section 76 is that the tax had been paid prior to issue of show cause notice and that the unit is regis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ad. High Court [2015 (1) TMI 38 - MADRAS HIGH COURT]. The High Court upheld the decision that declaration of a unit as sick company under Sick Industrial Companies Act, 1985, is a 'reasonable cause' for waving penalty under Section 80 of the Act. In these circumstances, the order for imposition of penalties is set aside. - Decided in favour of assesse. - Appeal No. ST/89146/2013-Mum - Final Order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... December 2009. The entire amount of service tax was paid later but before the issue of show cause notice. The appellant is in appeal against the penalties imposed under Sections 77 78 of the Finance Act, 1994. 3. Heard both sides. 4. The Ld. A.R. states that penalty under Section 76 was waived. He also pleads financial stress as the unit has been declared sick and is registered under BIFR. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the tax had been paid prior to issue of show cause notice and that the unit is registered under BIFR. Section 80(1) of the Finance Act states Notwithstanding anything contained in the provisions of Section 76, Section 77 or [first proviso to sub-section (1) of Section 78], no penalty shall be imposable on the assesee for any failure referred to in the said provisions, if the assessee proves that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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