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TMI Blog2017 (5) TMI 569X X X X Extracts X X X X X X X X Extracts X X X X ..... also been imposed on the appellant under Section 78 of the Finance Act, 1994. 2. The brief facts are that the appellant, a corporation of Uttarakhand Government, is engaged in the work of scientific extraction and sale of forest produce and other natural resources in Uttarakhand. They availed service of various transporters for transportation of forest products etc. from their units to depots. They being the recipient of services under the category of "transportation of goods by road" i.e the Goods Transport Agency Service as defined under Section 65(105) (zzp) of the Finance Act, 1994, are liable to pay service tax for said service. 2.1 There were inquiries by the Revenue (DGCEI - Delhi Zonal unit) about non-payment of service tax on GTA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nch of the High Court of Uttarakhand. The Hon'ble High Court of Uttarakhand in the case of their said special appeals (Nos. 274 to 277 and 325 to 339 of 2014) gave the judgement dated 25th August, 2014 observing that the authorities will look into the subject matter and consider the issue of penalty and interest in terms of the Col-5 of the Clarification on VCES (Scheme) dated 25.11.2013 of the Revenue whereunder it says that a lenient view on the issue of penalties under the provisions of Finance Act, 1994, [Section 73(3) and Section 80] will be taken, where no tax dues, is pending and declarations could not be filed under VCES. 4. With background of above facts, both sides represented by ld. Counsels Shri Rajesh Gupta for the appellant a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pplicable to present facts; and then considering the Hon'ble Uttrakhand High Court's order referred above and also in the light of provisions of Section 73(3) and Section 80 of Finance Act, 1994, no penalty is liable to be imposed on the assessee appellant. Consequently, the penalties imposed by the impugned orders are hereby set aside.
5.3 With above findings, the subject matters are remanded to original adjudicating authority for the limited purpose of quantifying the interest. If there is any balance interest remains payable the same would be payable forthwith by the appellant.
6. In the result, the impugned orders are modified to above effect and appeals allowed in above terms.
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