2011 (4) TMI 586

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... transitional period and the benefit of doubt that existed in the mind of the assessee is to be given to him - It constitutes a reasonable cause for not paying the service tax in view of Section 80. The Tribunal was justified in interfering with the levy of penalty and in setting aside the same - Decided in favor of the assessee
N. Kumar and Ravi Malimath, JJ. REPRESENTED BY : Shri M.V. Chandrashekara Reddy, Advocate, for the Appellant. Shri K.S. Ravishankar, Advocate, for the Respondent. [Judgment per : N. Kumar, J.]. - The revenue has preferred this appeal against the order passed by the Tribunal [2006 (1) S.T.R. 302 (Tri. - Bang)], which though upheld the action of the Assessing Authority in levying duty and interest on the servic .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ferred an appeal against the order of the Tribunal. 3. The learned Counsel for the revenue assailing the impugned order contends that the penalty payable under Section 76 is automatic and there is no discretion left to the authorities to waive or reduce the penalty payable. More over, the Appellate Tribunal was in total error in coming to the conclusion that there are no mala fides on the part of the assessee without there being any material on record. 4. Per contra, the learned Counsel for the assessee contended that the assessee was throughout contending that he has already paid the excise duty on the value of erection and commissioning services and till 26-6-2003, there was no service tax leviable on the said services which w .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... After contesting the matter before the Tribunal, the assessee has paid the service tax and interest thereon. It is in these circumstances, it cannot be said that there is any willful attempt to evade the payment of tax on the part of the assessee. More over, the commissioning, installation and erection work was brought to service tax only from 1-7-2003 and now the tax claimed is only for the period 1-7-2003 to 30-9-2003. It is in the nature of transitional period and the benefit of doubt that existed in the mind of the assessee is to be given to him. It constitutes a reasonable cause for not paying the service tax in view of Section 80. The Tribunal was justified in interfering with the levy of penalty and in setting aside the same. We do .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X