TMI Blog2006 (8) TMI 32X X X X Extracts X X X X X X X X Extracts X X X X ..... alty u/s 76 and ibid set aside and penalty u/s 77 ibid reduced to Rs. 2000/- - Appeal No. ST/119/2005 - Final Order No. A/1391 /2006-WZB/C-IV (SMB) - Dated:- 17-8-2006 - [Order] - The respondents are not present. Heard the learned DR for the applicant Commissioner. The department's appeal is against the waiver of the penalty amounts and reduction in penalty amount by the lower appellate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aid failure." Thus, there is a provision for not imposing any penalty if the assessee proved that there was a reasonable cause for the said failure. I find that the appellants, in this case were under the bona fide doubt regarding their activity whether covered by Service tax or not, therefore there was a reasonable cause on their part in not depositing the Service tax in time. Therefore, I am of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bona fide belief that the offender was not, liable to act in a manner prescribed in the statute penalty was not imposable even for the minimum amount prescribed and the Tribunal considered the decision of Supreme Court in the case of Hindustan Steel v. State of Orissa - 1978 (2) E.L.T. (J159). Also, the Tribunal in the case of Smitha Shetty and Co. v. CCE - 2003 (57) RLT 543 (CEGAT) has held that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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