2008 (7) TMI 327 - AT - Service Tax

Service Tax was paid before the issue of Show Cause Notice along with interest Quantum of penalty imposable - issue is fully covered in assessee s favour in terms of the judgment rendered in the case of M/s. Reach Events Management and Majestic Mobikes Pvt. Ltd. - Assistant Commissioner is justified in imposing lesser penalty under Section 78 of the Finance Act and not imposing any penalty under Sections 76 and 77 appeal of assessee against revision order of commissioner is allowed

Summary

Issues:
1. Imposition of penalties under Sections 76, 77, and 78 of the Finance Act, 1994 based on the Order-in-Original.
2. Comparison of similar cases where penalties were set aside by the Tribunal and High Court.
3. Application of relevant case laws to the present matter.

Analysis:

1. The judgment dealt with the imposition of penalties under Sections 76, 77, and 78 of the Finance Act, 1994 based on the Order-in-Original issued by the Assistant Commissioner of Central Excise. The Assistant Commissioner considered the circumstances and found no mala fide intention on the part of the assessee in paying the tax. He imposed a lesser penalty of Rs. 15,000 under Section 78 of the Finance Act, refraining from penalties under Sections 76 and 77.

2. The Counsel pointed out similar situations in batch matters where penalties were set aside by the Tribunal, citing cases like M/s. Reach Events Management and Majestic Mobikes Pvt. Ltd. The Tribunal had set aside penalties imposed by the Commissioner in those cases. Reference was also made to a High Court ruling in the case of CCE v. Sunitha Shetty, where penalties were set aside by the High Court.

3. The learned DR argued that the High Court's ruling in the case of M/s. The First Flight Couriers Limited, setting aside the Tribunal's order and restoring the Revisionary Order imposing penalties, should apply. However, the Counsel distinguished this judgment, stating that factual circumstances differed. The Tribunal, after careful consideration of submissions and judgments, found the issue fully covered in the assessee's favor based on the cases of M/s. Reach Events Management and Majestic Mobikes Pvt. Ltd. The Tribunal allowed the stay application, set aside the impugned order, and allowed the appeal based on the above judgments.

This comprehensive analysis of the judgment highlights the issues involved and the Tribunal's decision based on the application of relevant case laws and legal principles.