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TMI Blog2011 (1) TMI 721X X X X Extracts X X X X X X X X Extracts X X X X ..... es during March, 2003 and obtained a registration on 26-3-2003 - there is no willful default on payment of such amount and hence, they are not liable to pay the penalty and requested for waiver of the penalty imposed - it is clear, that the assessee came to be constituted in April 2002 as a partnership firm - But once the authorities brought it to their notice, that the Act is applicable even to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pulated. 2. The material on record discloses that the assessee was carrying on the business of providing taxi services. The partnership business was constituted on 1-4-2002. The case of the assessee was that he was not clear about the application of the provisions of service tax as he was of the view that the rent a cab scheme operator should own a minimum 50 vehicles to obtain a licence and t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... here is no willful default on payment of such amount and hence, they are not liable to pay the penalty and requested for waiver of the penalty imposed. The Original Authority being satisfied with the explanation offered by them, confirmed the demand of Service Tax of Rs. 72,000/- and demand of Interest of Rs. 32,513/- and by invoking Section 80 of the Finance Act, 1994 declined to impose any penal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uty because of confusion created in their minds, as they were under a bona fide belief, they were not liable to pay penalty. Hence the Original Authority was justified in not imposing any penalty. Therefore, it set aside the order of the Revisional Authority and restored the order of the Original Authority. Aggrieved by the same, revenue is in appeal. 4. From the aforesaid facts, it is clear, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not be said that they intended to evade duty and there was any mala fide motive or intention in not paying the tax within the time prescribed. Therefore, the authorities in exercise of their discretion under Section 80 of the Act, which is conferred on them, held that the cause shown is a reasonable cause and waived the penalty, which is purely a question of fact. No substantial question of law ar ..... X X X X Extracts X X X X X X X X Extracts X X X X
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