9911796707
TMI Blog2007 (1) TMI 566X X X X Extracts X X X X X X X X Extracts X X X X ..... /s. Busy Bee, Sowripayalam, Coimbatore, the appellants herein, has filed this appeal along with stay application. M/s. Busy Bee had rendered "Business Auxiliary Service" by providing office assistants to M/s. BPL Cellular Ltd. and M/s. ICICI Bank without registering themselves with the Department and without following the statutory formalities including payment of service tax. When the Department ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rdingly he modified the original order by setting aside the penalty imposed under Section 78 of the Finance Act, 1994 on the assessee. The present stay application is for waiving pre-deposit and staying recovery of the penal liabilities as per the impugned order. 2. After hearing both sides, I take up the appeal itself for disposal after dispensing with the requirement of pre-deposit. 3.&em ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ants. The lower appellate authority had found that the short payment of tax during the material period in the instant case had occurred not due to any intention to evade payment of Service tax. The appellants deserved leniency as regards penal liabilities under Section 76 and 77 of Finance Act, 1994 in terms of Section 80 ibid. 4. I have carefully studied the case records and considered the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 79, no penalty shall be imposable on the assessee for any failure referred to in the said provisions if the assessee proves that there was reasonable cause for the said failure." I am inclined to waive the penalties against the appellants as provided in Section 80 of the Finance Act, 1994. In the circumstances, the impugned order is set aside. The appeal is allowed. (Order dictated and pronoun ..... X X X X Extracts X X X X X X X X Extracts X X X X
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