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TMI Blog2014 (4) TMI 1029X X X X Extracts X X X X X X X X Extracts X X X X ..... STAT") in Central Excise Appeal No.ST/10065/2013-DB and Central Excise Appeal No.ST/10066/2013-DB, the appellant - revenue has preferred the present appeals to consider the following substantial questions of law. '(i) Whether the Hon'ble CESTAT is justified in setting aside penalties imposed under Sections 70, 76, 77 and 78 in view of the Section 80 of Finance Act, 1994, in spite of the fact that respondent had not shown any "reasonable cause" as envisaged under Section 80 of Finance Act, 1994? (ii) The cause shown by the respondent that they were of the view that the service tax was not leviable on the activit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ). For providing the services as "Mineral Services", the show-cause notice came to be issued by first Adjudicating Authority and the respondent was called upon to show cause as to why :- (i) the Service Tax amounting to Rs.2,51,72,436/- [Rupees Two Crores Fifty One Lakhs Seventy Two Thousand Four Hundred Thirty Six Only] (sum total of Service Tax of Rs.2,44,39,259/- + Education Cess of Rs.4,88,785/- E.C. and Higher Secondary Education Cess of Rs.2,44,393/-) as detailed in Annexure "A" to Show Cause Notice, not paid for the period June, 2007 to March, 2008 against the services rendered under the category of "Mining of Mineral, Oil or Gas Service" should not be demanded and recovered fro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... holding that the services provided by the respondent as "Mining Services" before 16.05.2008 and was liable to pay the service tax on the same for the period from 01.06.2007 to 28.03.2008. That the Adjudicating Authority has also imposed penalty under section 75 of the Finance Act, 1994 and imposed penalties under sections 76, 77(1)(a) and 78 of the Finance Act, 1994. The Adjudicating Authority has also imposed penalty under section 70 of the Finance Act, 1994 on respondent for not filing the prescribed returns in time. The Adjudicating Authority has also imposed personal penalty of Rs.10,000/- on one Shri Anandan Pitchumani, Finance Manager of M/s. Dalma Energy LlC under section 77(2) of the Finance Act, 1994. 5. Feeling aggrieved and diss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e that they are required to pay service tax, they have not paid the service tax and, therefore, they are liable to pay penalties under sections 70, 76, 77 and 78 of the Finance Act, 1994. 9. It is further submitted by learned advocate appearing on behalf of the appellant that even the services provided by the respondent were classified as "Mining Services" which came to be confirmed by the Appellate Tribunal and, therefore, the learned CESTAT ought to have set aside the penalties imposed by the Adjudicating Authority. 10. It is submitted by learned advocate appearing on behalf of the appellant that when it was found by the Adjudicating Authority that despite the fact that the services rendered by the respondent were classified as "Mining ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he entire amount of service tax with 25% of penalty. Considering the aforesaid facts and circumstances of the case and considering section 80 of the Finance Act, 1994, when the learned CESTAT has deleted / quashed and set aside the penalties imposed under sections 76, 77 and 78, it cannot be said that the learned CESTAT has committed any error and/or illegality in passing the impugned order. Section 80 of the Finance Act, 1994 reads as under :- "80. Penalty not to be imposed in certain cases. - (1) Notwithstanding anything contained in the provisions of section 76, (section 77 or section 78) no penalty shall be imposable on the assessee for any failure referred to in said provisi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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