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TMI Blog2013 (8) TMI 52X X X X Extracts X X X X X X X X Extracts X X X X ..... Rent-a-Cab service. He was registered with the department prior to 1.3.2005 for payment of service tax and was paying service tax when there was no exemption for services provided by small service providers. Later, when an exemption Notification No.6/2005-ST dt. 1.3.2005 was issued providing exemption for services up to a value of Rs. 4 lakhs in a financial year, they surrendered the registration ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inst the demand. Further, a penalty of Rs. 30,000/was imposed under Section 78 and Rs. 1000 was imposed under Section 77 of the Finance Act, 1994. Aggrieved by the order, appellant filed appeal before Commissioner (Appeals) who did not give any relief. Aggrieved by the order of the Commissioner (Appeals), appellants have filed this appeal before Tribunal. 2. The counsel for appellant submits that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at all because he was registered as an assessee earlier and he surrendered his registration only after knowing the exact provisions that exemption is available only up to Rs. 4 lakhs in a financial year. Though, he crossed the exemption limit, in the financial year 2004-05 itself, he did not pay tax even as late as 30.6.06 and only after the departmental officers started investigation, appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r could have been closed by paying 25% of the tax amount as penalty. This was not done by the lower authorities. Therefore, I follow the decision of Hon'ble Delhi High Court in the case of K.P. Pouches .Vs UOI 2008 (228) E.L.T. 31 (Del.) and order that penalty imposed under Section 78 may be reduced to 25% of the penalty if such payment is made within 30 days of the receipt of this order. If such ..... X X X X Extracts X X X X X X X X Extracts X X X X
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