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TMI Blog2011 (1) TMI 562X X X X Extracts X X X X X X X X Extracts X X X X ..... 4,872/- for the period from 1st July 2003 to June 2005 and also ordered payment of interest and penalty under Sections 76 & 77 of the said Act. However, refrained from imposing penalty under Section 78 while holding that the assessee had made out reasonable cause for non imposition of penalty under the said section. 4. While assailing the impugned order, it was submitted on behalf of the department that the Commissioner erred in giving benefit of Section 80 of the said Act to the assessee while refraining from imposing penalty under Section 78. 5. The Commissioner while dealing with the aspect of the penalty under Section 78 has clearly held that the assessee had co-operated with the department in the course of investigation and has disch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7. I fully endorse the views taken by the Hon'ble President and wants to add that the appeal by the Revenue is on the ground that the reasons given by the Adjudicating Authority for invoking provisions of Section 80 of the Finance Act, 1994 is not proper. Section 80 of the Finance Act reads as under:- "Section 80 Penalty not to be imposed in certain cases-Notwithstanding anything contained in provisos to Section 76, Section 77, Section 78 or Section 79 no penalty shall be imposable on the assessee for any failure referred to in the said provisions if the assessee proves that there was reasonable cause for the said failure". 8. The main reason given by the Adjudicating Authority for invoking Section 80 of the Finance Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re under the bonafide impression that they were eligible for the exemption under Notification No. 12/2003-ST dated 20.6.2003 for business auxiliary services provided by commission agents. They also submitted that they were actually providing assistance to foreign tourists and was in no way promoting the business of the various establishments from which tourists were making purchases. While these arguments have been properly negatived in the adjudication order, we are of the view that there were sufficient reasons for failure on the part of the assessee to pay tax, to get relief under Section 80 of the Finance Act, 1994. 10. Tn the facts and circumstances of the case, we do not find this to be a fit case to interfere with the order of the a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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