TMI Blog2008 (2) TMI 84X X X X Extracts X X X X X X X X Extracts X X X X ..... ident [Order]-1. This appeal by the assessee is directed against the order of the Commissioner of Central Excise, Jaipur dated 26.4.2007/3.5.2007 imposing penalty at the rate of Rs.100/- per day from the date service tax became payable till the actual date of payment under Section 76 of the Finance Act, 1994. The order was passed in exercise of suo moto revisional power under Section 84 of the Finance Act. Section 84 of the Act lays down that the Commissioner may call for the record of proceedings in which an adjudicating authority has passed any decision or order, make such inquiry or cause such inquiry to be made and, subject to the provisions of this Chapter, pass such order thereon as he thinks fit after giving opportunity of h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the order at a later stage while challenging the correctness of the suo moto order under Section 84 the scope of which is limited to imposition of penalty. 3. Counsel then submitted that the appellant having paid the tax with interest thereon before issuance of the show cause notice, the Commissioner committed error in imposing penalty under Section 76. In this regard he placed reliance on Commissioner of Central Excise Customs, Aurangabad Vs. Innotech Pharmaceuticals Ltd., 2007(216) ELT 515(BOM.), and Commissioner of Central Excise, Ludhiana Vs. Sigma Steel Tubes, 2007 (218) ELT 657 (P H) . The decisions were rendered in the context of Section 11AC of the Central Excise Act which is pari materia to Section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is able to prove that there was a reasonable cause for failure to pay the tax and interest thereon. Question for consideration is whether in the facts and circumstances, there was a reasonable cause for failure to pay the tax. The case of the appellant is that it was providing the coaching service from the residence of the proprietor, Smt. Meenu Vijay, and it was misled into believing that the service is not covered by the definition of taxable service and as such did not pay the tax; no sooner than it came to realize the existence of the liability it paid the sum of Rs.1,38,689/- between 6.12.2005 and 9.3.2006. 5. It may be mentioned here that the service by a commercial training or coaching centre in relation to commercial trai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing given my anxious consideration to the submissions advanced by learned counsel, I am unable to accept the bald plea that there was a reasonable cause for the appellant for not paying the tax when the payment became due. Reasonable cause cannot be construed to mean any ipse dixit on the part of the assessee. In the absence of any material corroborating the appellant's case it is difficult to accept that the mere fact that coaching was provided from the house was sufficient to make the proprietor believe that she was not liable to pay the tax. The appellant should have shown better discretion and paid the tax on time in accordance with law. In the circumstances I am unable to accept that there was a reasonable cause or a s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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