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TMI Blog2010 (6) TMI 136X X X X Extracts X X X X X X X X Extracts X X X X ..... ESH KUMAR: This is an appeal filed by the Department. The brief facts of the case are that the respondents are functioning as Direct Marketing Agents of HDFC Bank and their activities were covered by the definition of 'Business Auxiliary services', which became taxable with effect from 1.7.2003. However, while the respondents were providing this taxable service, they neither took servi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... est vide TR-6 challan dated 12.08.2005 was appropriated. The Assistant Commissioner also imposed penalties under Sections, 76, 77 and 78 of the Finance Act, 1994 on the assessee. On appeal, The Commissioner(Appeals) vide Order-in-Appeal No.3/ST/Stay/CHD-II/2010 dated 25.1.2010 while confirming the Assistant Commissioner's order, reduced the penalty under Section 78 of the Act to 25% of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re pleaded that the Commissioner (Appeals)'s order waiving penalty under Section 76 by invoking Section 80 of the Act, is not correct. 2.2. Shri Sandeep Singh, representing the respondents, pleaded that they were not aware that their activities were covered by the definition of 'Business auxiliary services' which became taxable w.e.f. 1.7.2003, that as soon as they were told by the department, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ervice tax took place during initial period when the service tax was introduced on 'Business auxiliary services' with effect from 1.7.2003 and as soon as the respondents were informed by the department that their activity was covered by the definition of 'Business Auxiliary services', they immediately discharged the tax liability alongwith interest. Moreover, I find that the penalty under Se ..... X X X X Extracts X X X X X X X X Extracts X X X X
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