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TMI Blog2015 (7) TMI 189X X X X Extracts X X X X X X X X Extracts X X X X ..... 2008 (9) TMI 52 - SUPREME COURT ), it is relevant to the penalties imposed under Section 11AC of the Central Excise Act, 1944. However, in the present case, the penalties are under Sections 70 and 78 of the Finance Act, 1994. As regard these penalties there is a clear provision under Section 80 of the Finance Act, 1994 wherein the power is vested in the authority to consider the waiver of penalty on satisfaction of 'reasonable cause' for non-payment of service tax. - there is no infirmity in the order of the learned Commissioner (Appeals) and the same does not require any interference. The impugned order is upheld. - Decided against Revenue. - Appeal No. ST/85003/2013, Cross-Objection No. ST/CO-91021/2013 - Final Order Nos. A/311-312/2015- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... commercial premises. In adjudication, a total service tax amount o f ₹ 12,68,768/- was confirmed and an amount of ₹ 6,69,283/- already paid was appropriated. Apart from this confirmation the learned adjudicating authority demanded interest under Section 75, imposed penalty of RS.5,000/- under Section 70 and a penalty of ₹ 12,68,768/- under Section 78 of the Finance Act, 1994. Aggrieved by the said order, the respondent filed an appeal before the Commissioner (Appeals), who maintained the demand of service tax amounting to ₹ 12,68,768/-, however, penalties under Sections 70 and 78 were set aside. Being aggrieved, Revenue is before me. 3. The learned Assistant Commissioner (AR), Shri A.B. Kulgod appeared on behalf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that in the works order issued by the M/s Ashwini Enterprises, Mumbai and M/s. B.G. Shirke it is clearly mentioned that service tax is nil, hence penalty under Section 70 78 is not imposable. I find that the decisions on phrase reasonable cause and interpretations, cited by higher appellate forums are as follows:- (a) Reasonable cause can be reasonably said to be a cause which prevents a man of average intelligence and ordinary prudence, acting under normal circumstances without negligence or inaction or want of bona fides- Azadi Bachao Andolan vs. UOI 252 ITR 471 (Delhi). (b) 'Reasonable cause' as applied to human action is that which would constrain a person of average intelligence and ordinary prudence. It can be descr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... equired under the provisions of the Act If the appellant can show that the manner in which he was making the deposits of the service tax was bona fide i.e., in good faith, it would amount to 'reasonable cause'. Bonafide implies in the absence of fraud or unfair dealing. The equivalent of this phrase is honestly . The correct province of this phrase is, therefore, to qualify things or actions that have relation to the mind or motive of the individual. Chambers 20 th Century Dictionary defines bona fide to mean 'in good faith; genuine'; The word 'genuine' means 'natural; not spurious; real; pure; sincere'. In Law Dictionary Mozley and Whitley define bona fide to mean 'good faith, without fraud or deceit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Dharmendra Textile Processors (supra), it is relevant to the penalties imposed under Section 11AC of the Central Excise Act, 1944. However, in the present case, the penalties are under Sections 70 and 78 of the Finance Act, 1994. As regard these penalties there is a clear provision under Section 80 of the Finance Act, 1994 wherein the power is vested in the authority to consider the waiver of penalty on satisfaction of 'reasonable cause' for non-payment of service tax. Therefore, the case law relied upon by the Revenue is of no help. 7. In view of the above discussion and taking into consideration the facts and circumstances of the case, I am, of the view that there is no infirmity in the order of the learned Commissioner (Appe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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