TMI Blog2018 (2) TMI 78X X X X Extracts X X X X X X X X Extracts X X X X ..... in the proceedings, absence of these factors would mean that the appellant should not be penalised with an amount equal to the duty determined as envisaged under Section 78 of the Finance Act, 1994 - there does exist reasonable and justifiable cause in the failure of the appellants to have discharged tax liability when they should have. However, on being pointed out by the Department, they have pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er Section 78 of the Finance Act, 1994. Hence, the appellants are before this forum. 2. Today when the matter came up for hearing, Ld. Advocate Shri G. Natarajan submits that there is no dispute on tax liability and that in fact they had paid up service tax amount before issue of SCN itself. However, the appellant is seeking relief from penalty imposed by the adjudicating authority under Sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Circulars cited by the Ld. Advocate. The cases relied upon by the Ld. AR have reiterated the ratio laid down by the Apex Court in the landmark judgments of UOI. Dharmendra Textile Processors 2008 (231) ELT 3 (S.C) and UOI Vs. Rajasthan Spinning and Weaving Mills - 2009 (238) ELT 3 (S.C.). The tenor of those judgments is to lay down that when the conditions expressly stated under Section 11A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ability. In our considered view, there does exist reasonable and justifiable cause in the failure of the appellants to have discharged tax liability when they should have. However, on being pointed out by the Department, they have paid up the differential tax liability along with interest thereon. These are mitigating factors which would definitely attract the beneficial provisions of Section 80 i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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