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TMI Blog2012 (11) TMI 438X X X X Extracts X X X X X X X X Extracts X X X X ..... - Penalty under Section 76 is not a mandatory penalty - penalty under Section 76 is required to be set aside by invoking the provisions of Section 80 of the Act which provides for non-imposition of penalty on a reasonable cause being shown - demand for service tax, interest and imposition of penalty under Section 78 of the Act confirmed - penalty under Section 76 of the Act set aside - ST/570-571/2010 - A/218-219/2012 - Dated:- 4-1-2012 - Shri B.S.V. Murthy, J. REPRESENTED BY : Shri S. Sanju Mehta, Chartered Accountant, for the Appellant. Shri J.S. Negi, AR, for the Respondent. [Order]. During the course of audit of M/s. Priti Marine Pvt. Ltd., GIDC-1, Sihor, a registered manufacturing unit, it was noticed that they ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2005-06 and ₹ 13,22,152/- for the financial year 2006-07. For confirmation, he produced the copy of Income Tax Return filed by him for the financial year 2005-06 and 2006-07 and stated that ₹ 1,06,130/- and ₹ 1,59,029/- had been received by him for the month of April May, 2005. He was unaware about the tax liability on whatever the amount received. Therefore, he neither took service tax registration nor paid any service tax thereon. He confessed the service tax liability payable on service provided by him and promised to pay the service tax. Thereafter, proceedings initiated which culminated in confirmation of demand for service tax and education cess of ₹ 2,99,814/- with interest and imposition of equal amount of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the fact that appellant was providing manpower supply service only during the audit of service receivers and thereafter proceeding were initiated. All these facts would show that appellant cannot be said to have a bona fide belief about his liability to tax and therefore I am not convinced about the justification for waiver of penalty under Section 78 which has already been discharged. Penalty under Section 76 is not a mandatory penalty. Having regard to the fact that the appellant is an individual and not very educated and also due to the fact that original adjudicating authority has consciously decided not to impose penalty under Section 76 of the Act and I consider it is appropriate that in this case also penalty under Section 76 is req ..... X X X X Extracts X X X X X X X X Extracts X X X X
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