TMI Blog2015 (11) TMI 523X X X X Extracts X X X X X X X X Extracts X X X X ..... vices of motor vehicle. However appellant have complied with the option provided by the adjudicating authority, paid the service tax alongwith interest prior to issuance of show cause notice and 25% of penalty within one month from the date of adjudication order, therefore the penalty stand reduced to 25% of the service tax amount of ₹ 10,67,854 - Therefore taxability of the said services was not free from doubt, therefore the appellant in respect of these two services shown reasonable cause for waiver of penalty imposed under Section 77 and 78. Penalty of 25% of the service tax amount of ₹ 10,67,854/- and drop penalty imposed under Section 78 in respect of service tax paid on commission from bank/insurance company and handling ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the department appellants paid service tax in respect of referred services. Show cause notice dated 24/4/2012 was issued proposing demand of service tax of ₹ 10,67,854/- under the category of authorized service station services, service tax of ₹ 2,57,172/- under the category of business auxiliary service towards amount of commission received from the banks/insurance company and service tax of ₹ 2,40,752/- under the category of business support service towards amount received under registration charges or handling charges. Since the amount was already paid alongwith interest it was proposed to be appropriated against the above demand and interest. The show cause notice also proposed imposition of penalty under Section 77 a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... k and insurance company and service charged for RTO registration of vehicle, he submits that both the issues are highly contentious and matter was under litigation and involved interpretation of law of taxability of the said services. Therefore in respect of these services non payment of service tax at relevant time should not be construe as suppression of facts on the part of the appellant. Therefore penalty commensurate to the service tax of all these services should not have been imposed. He further submits that appellant has deposited entire service tax amount alongwith interest before issuance of show cause notice, therefore penalty imposed under Section 77 and 78 should be waived invoking Section 80 of Finance Act, 1994. He also submi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ice tax before pointing out by the departmental officers. In these circumstances appellant is not entitled for the any relief from the penalty imposed by the original authority and upheld the by the Commissioner (Appeals). 5. I have carefully considered the submissions made by both sides and perused the record. 6. I find that service tax demand in this case is on three services namely: (a) Services of motor vehicle (b) Commission of bank and insurance company (c) Handling charges i.e. charges for RTO registration of the vehicle. It is observed from the records and submission made by both sides that as regard services of motor vehicle, appellant have been collecting service tax alongwith service charges and was not ..... X X X X Extracts X X X X X X X X Extracts X X X X
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