TMI Blog2016 (11) TMI 518X X X X Extracts X X X X X X X X Extracts X X X X ..... abatement of 40% in terms of Notification No. 21/97 - ST dt. 26.06.97 and subsequent analogus notifications. We accordingly hold that the Appellant is eligible for abatement of 40% from the value of services under aforesaid notifications. Imposition of penalty u/s 76,77 and 78 - Held that: - the Appellant had taken over the hotel known as “Hotel Centaur” from Govt. of India under its divestment programme. However as the facts appear, due to non cooperation by employees and their strike, litigation in High Court, VRS to their employee and subsequent closure the service tax payment could not be made. We also find that details of services rendered by them were appearing in their Bills and accounts books. we find that the non payment of serv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onstraints they could not make service tax payments. 2. The Appellants were issued show cause notice dt. 31.08.2004 alleging that the Appellant has neither got themselves registered nor paid service tax on services of Health and Fitness Services and Drycleaning Services. It was also contended that service tax though collected under the category of Mandap Keeper Services but was not paid to the Government. The show cause notice thus proposed demand of ₹ 54,27,614/- on account of non payment of taxes. Out of the said demand ₹ 31 Lakh demand pertained to service tax on Mandap keeper which was charged by the Appellant from the customers but was not paid to the government. It was also proposed to impose penalties upon the Appell ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... non cooperation of employees and VRS amounts given to them. The Counsel takes us through the relevant documents in this regard. The Ld. Counsel submits that the impugned order has not extended benefit of the abatement of 40% under the category of Mandap Keeper Services which is available to them in terms of Notification No. 21/97 - ST dt. 26.06.97 and subsequent analogus notifications. He submits that the Appellant is providing banquet services in their hotel which includes the food, therefore they are entitled for the abatement from the gross value of the of banquet service charges under the aforesaid notification. It is further submitted that the non payment of service tax on Dry cleaning and Health Club services was only due to ignoranc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... J188(Kar.)] 6. Shri B.Kumar Iyer Ld. Superintendent (AR) appearing on behalf of the revenue reiterates the findings of the impugned order. 7. We have carefully considered the submissions made by both sides and perused the records. We find that there is no doubt about the taxability of services in question. The appellant also not contesting the taxability except the quantification of service tax due to denial of notification of abatement. Once it is accepted that the Appellant were rendering Mandap Keeper/ Banquet Servcies and the Bills were raised for the gross amount towards food and all services related with such activity, the assessee would be eligible for abatement of 40% from the value of the service for payment of service tax. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on payment of service tax on above services was due to financial constraints as well as various happenings as mentioned above. Moreover, the Appellant has not contested the service tax liability which is payable and major amount was already deposited. We therefore hold that the Appellant is eligible for waiver of penalties in terms of Section 80 of the Finance Act, 1994. 9. As per our above observations, we hold that the impugned order is modified to the extent that the demand of Service tax is reduced to ₹ 34,38,279/- and penalties imposed under section 76,77 78 are set aside. As regard the penalty imposed under section 75A, we find that it is fact that the Appellant has not got the Health Fitness and Dry-cleaning services inc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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