9911796707
TMI Blog2013 (5) TMI 55X X X X Extracts X X X X X X X X Extracts X X X X ..... 2 (6) TMI 69] has laid down the law as to when the provisions of Section 80 (Penalty not be imposed in certain cases) can be invoked and fully applicable in the case. I invoke the provisions of Section 80 of Finance Act, 1994 and set aside the penalties imposed by the lower authorities on the appellant under the provisions of Section 76 & 78 of the Finance Act, 1994. - Appeal No.ST/678/11 - Final Order No. A/10244/2013-WZB/AHD - Dated:- 31-1-2013 - Hon'ble Mr. M.V. Ravindran, Member (Judicial) For the Appellant: Shri R. Subramanya, Adv For the Respondent : Shri K. Sivakumar, A.R. JUDGEMENT Per : Mr. M.V. Ravindran; This appeal is directed against the order in appeal No.140/2011/COMMR(A)/RBT/RAJ, dt.20.09.11. 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enalty of Rs.1,72,800/- under Section 76 for failure to pay service tax within the prescribed time limit and a penalty of Rs.2,16,648/- under Section 78 of the Act for suppressing the taxable amount. 3. Aggrieved by such an order, appellant preferred an appeal before the first appellate authority. The first appellate authority also did not agree with the contentions raised by the appellant as regards the setting aside the penalties imposed under Section 76 78 of the Finance Act, 1994 and upheld the same. 4. Ld. counsel would submit that the issue involved in this case is regarding the service tax liability on the amount paid by the appellant to the visiting engineers of foreign company from whom they have purchased the technical evalu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uted that by virtue of reverse charge mechanism as enshrined in provisions of Section 66A of the Finance Act, 1994, from 18.04.06, the appellant is liable to discharge the service tax liability. It is seen from the records that the audit party pointed out this anomaly to appellant and appellant had, on issuance of show cause notice discharged the service tax liability and interest thereof. 8. I find strong force in the contentions raised by the ld. counsel in as much as that the service tax liability discharged by the appellant, they could have availed the cenvat credit, as the said service tax was in relation to the manufacturing activity. I also find that both the lower authorities have imposed Section 76 as well as 78 as the penalty un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y discretion is left, then the said quasi judicial discretion is to be exercised reasonably. Before levying penalty, the authority is required to find out whether there was any failure referred to in the concerned provision and the same was without a reasonable cause. The initial burden is on the assessee to shown that there existed reasonable cause, which was the reason for the failure referred to in the concerned provision. Thereafter the authority has to consider the explanation offered by the assessee for failure and whether it constitutes a reasonable cause. Reasonable cause means an honest belief founded upon reasonable grounds, of the existence of a state of circumstances, which assuming them to be true, would reasonably lead any o ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
