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TMI Blog2015 (2) TMI 147X X X X Extracts X X X X X X X X Extracts X X X X ..... 12 - Supreme Court of India]. However, at the same time, the Hon'ble Supreme Court did not grant stay unconditionally. It only granted the conditional stay. As the recipient in this case did not observe conditions of the stay, the interim order of the Hon'ble Supreme Court does not help the appellant who is the service provider in this case. Further, Government gave the benefit of waiver of penalty under Section 76 if the tax was deposited before 26.11.2012 under Section 80(2) of the Finance Act, 1994. The appellant paid the Service Tax on 10.12.2012 i.e after two weeks from the expiry of the period specified under Section 80(2). Clearly the waiver of penalty cannot be extended to the appellant in view of Section 80(2) because the Governme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... retrospectively valid from 1.6.2007. The Retailers Association went in appeal to the Supreme Court, who stayed the operation of the levy on 14.10.2011 subject to following of certain conditions, such as payment of portion of the Service Tax in instalments. However, the order was applicable only to Service Tax liability from 1.6.2007 to 30.9.2011 in respect of the applicants. In the present case, the recipient of service being a party to the association of Retailer's Association of India did not fulfil the condition of the Supreme Court. The service provider in this case did not challenge the levy and was not a party in the case before the Hon'ble Supreme Court. However, they paid the Service Tax on 10.12.2012 with interest and also ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a Securities and Detective Agency vs. Commissioner of Central Excise - 2014-TIOL-1242-HC-KAR-ST. 5. The learned AR reiterates the findings of the Commissioner and drew attention to Section 80 (2) in which penalty under Section 76 was waived subject to the condition that the amount of Service Tax along with interest is paid in full within a period of six months on which the Finance Bill was passed i.e. before 26.11.2012. 6. I have considered the rival contentions. Penalty under Section 76 is imposable for failure to pay Service Tax, Section 80 (1) grants waiver from the payment of penalty if the assessee proves that there was reasonable cause for the said failure. In the present case, no doubt there was confusion regarding leviability ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... As no tax dues is pending in such case, declaration cannot be filed under VCES. However, there may be a case for taking a lenient view on the issue of penalties under the provision of the Finance Act, 1994. In this regard attention is invited to section 73(3) and Section 80 of the Finance Act, 1994. From the above, it is clear that normally the scheme is not applicable when the tax had already been paid before the introduction of the scheme. At the same time, Government has left a window open for taking a lenient view in some circumstances under Section 80 of the Finance Act, 1994. As discussed above, the matter was pending in Courts and has still not attained finality in the case of Retailers Association of India, which is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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