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TMI Blog2001 (9) TMI 1X X X X Extracts X X X X X X X X Extracts X X X X ..... gainst them for late registration, late payment of service tax and late submission of ST-3 returns. In reply to the SCN, the appellants stated that before March, 2000, they were not aware that service tax had been imposed on security agencies w.e.f. 16-10-98; that they came to know about imposition of service tax on security agencies only during survey operation in March, 2000. It was also contended that at the moment they came to know they applied for registration and that before the adjudication of the case, they had paid the entire amount of taxes. The Asstt. Commissioner adjudicated the case as above and when the appellant filed an appeal, the Commissioner (Appeals) held : "I do not find that a case is made out for waiving any of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it can be treated leniently. He, therefore, prays that the appeal may be rejected. Ld. DR in support of his contention cited and relied upon the Tribunal's decision contained in Final Order No. 186/2001-D, dt. 29-8-2001. 6. We have heard the rival submissions. We note in the instant case that service tax was levied under the Finance Act, 1998 which became effective from 16-10-98. Service tax for the first time was imposed under Finance Act, 1998. There was some confusion as to which services are taxable under this provision. However, the fact remains that tax on security services was leviable w.e.f. 16-10-98, therefore, the first question that arises is whether the tax should be levied or collected w.e.f. 16-10-98. There can not be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Tribunal in the case of CCE, Jaipur-II v. Earth Tour Travels (P) Ltd. (Supra). In this case the Tribunal held that penalty under Section 77 of the Finance Act is mandatory and there is no discretion with the authorities to reduce the penalty. This decision has not taken into consideration the provisions of Section 80 of the Act. Therefore, the ratio of the decision of Tribunal in the case of Earth Tour Travels (P) Ltd. is not applicable to the facts of the present case. Keeping in view the facts and circumstances of the case, the penalty imposed on the appellant under Section 77 of the Act is reduced to Rs. 5,000/- (five thousand). The appeal is disposed of as indicated above." 8. Having regard to the fact that penalty was d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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