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TMI Blog2010 (11) TMI 889X X X X Extracts X X X X X X X X Extracts X X X X ..... Whether the penalty under Section 76 of the Finance Act, 1994 can be dropped without invoking Section 80 of the Finance Act, 1994? (III) Whether the Tribunal in law was entitled to come to a conclusion regarding the unawareness regarding tax liability/bona fide on the face of the fact that they had collected Service Tax, with a finding of fact on this behalf? 2. The respondent-assessee is holding Service Tax registration under the category of "Construction service". The respondent had paid due Service Tax along with interest for the period from April, 2007 to June, 2007 and October, 2007 to December, 2007 late by 25 days and 86 days respectively. In respect of the said default, a show-cause notice came to be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ubmit that the controversy in issue stands concluded by the said decision in favour of the revenue. 4. Pursuant to the notice for final disposal issued by the Court, the respondent-assessee has vide communication dated 5th October, 2010, requested that the matter be adjourned for a month or one and a half months to enable him to prepare his defence and reply in consultation with his lawyer. However, despite a period of more than one month having elapsed since the date of the said communication, there is no appearance on behalf of the respondent. 5. In the circumstances, Admit. The following substantial question of law arises for determination :- "Whether the penalty under Section 76 of the Finance Act, 1994 can be reduced below ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lty below the prescribed limit. If the authority imposing the penalty is not entitled to levy below the minimum prescribed, the appellate Court and the Tribunal cannot read the provision so as being vested with such powers, namely, to reduce the penalty below the minimum prescribed. The Court accordingly answered the question in the negative. 7. The aforesaid decision would be squarely applicable to the facts of the present case wherein the Commissioner (Appeals) had reduced the penalty below the minimum prescribed by resorting to the provisions of Section 80 of the Finance Act, which has been confirmed by the Tribunal. In the circumstances, following the said decision, the question is accordingly answered in the negative, that is, th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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