9911796707
TMI Blog2014 (1) TMI 825X X X X Extracts X X X X X X X X Extracts X X X X ..... the same may be taken into consideration - respondent is a proprietary concern and admittedly, it was the first year of introduction of service tax on the services rendered by him. Having regard to the fact that it is a proprietary concern and the service tax was paid immediately and in respect of almost Rs.2 lakhs, it was the appellant’s claim that the contractor had paid the tax and therefore as a subcontractor he was not liable to pay and even in respect of that amount, the appellant had paid the tax without contesting the same, I find that this is a case where the Commissioner (A) has correctly invoked the provision of Section 80 of the Finance Act, 1994 - Decided against Revenue. X X X X Extracts X X X X X X X X Extracts X X X X ..... December 2005, they did not file the returns nor did they pay the taxes. As soon as a letter was written, they paid the tax, which would show that they had no reasonable cause for non-payment. But for the initiative taken by the Revenue, no tax would have been paid. He submits that penalties under different sections were imposed in this case. He relies on the decision of the Hon'ble High Court of Karnataka in the case of CST vs. Motor World: 2012 (27) S.T.R. 225 (Kar.) to submit that unless reasonable cause is shown, penalty cannot be waived. 4. I have considered the submissions. I find that in the case of Motor World (supra), Hon'ble High Court had held that if the assessee shows reasonable cause for such failure, authority has no power ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that no penalty was leviable, one of them being CCE vs. Machino Montell (I) Ltd.: 2004 (166) E.L.T. 466 (Tri.-LB). In that case, the Tribunal had taken the view that penalty under Section 11A is not mandatory even when there is suppression of facts, misdeclaration, etc. It has to be assumed that these are the factors that were taken note of by the Commissioner (A) that there was reasonable cause for delay in payment of service tax and no penalty was leviable. I take note of the fact that respondent is a proprietary concern and admittedly, it was the first year of introduction of service tax on the services rendered by him. Having regard to the fact that it is a proprietary concern and the service tax was paid immediately and in respect of a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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