TMI Blog2015 (12) TMI 1588X X X X Extracts X X X X X X X X Extracts X X X X ..... for the period prior to 18/4/2006, however, thereafter there was no doubt about taxability of services therefore the plea of the Ld. Counsel that the matter was under dispute is of no relevance for the period 2007-08 to December, 2009. I also note that Ld. Commissioner, considering the fact that the transaction was recorded in the books of account of the appellant, reduced the penalty to 50% invok ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /Group F/AC/3/2013 dated 31/5/2013 passed by the Assistant Commissioner, Service Tax Cell-I, Pune III commissionerate is modified as under. (i) The demand of Service Tax of ₹ 2,25, 185/- along with interest thereon under Section 75 of the Act, is upheld. (ii) Penalty imposed under section 78 of the Act is reduced to ₹ 1,12,593/- (iii) Penalty of ₹ 20,000/- imposed u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation, the authority confirmed the demand, interest and imposed penalties under Section 77 and equal amount of penalty under Section 78. Aggrieved by the Adjudication order, appellant preferred appeal before the Commissioner (Appeals) who upheld the demand, however reduced the penalty under Section 78 wherein it is provided that if the transaction is recorded in the books of account, imposition of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble Supreme Court as reported in 2010 (17) STR J57 (S.C.) therefore issue was contentious and it is settled only by the aforesaid Supreme Court judgment. Therefore the appellant was under bonafide belief that the service tax is not chargeable and for this reason the service tax could not be paid on time. In this circumstances the appellant has been able to show the reasonable cause for non payment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... also note that Ld. Commissioner, considering the fact that the transaction was recorded in the books of account of the appellant, reduced the penalty to 50% invoking new Section 78. In view of the facts and circumstances of the case, I find that appellant could not make out a case of reasonable cause for non payment of service tax in time. I do not find any infirmity in the impugned order, hence t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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