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TMI Blog2013 (3) TMI 632X X X X Extracts X X X X X X X X Extracts X X X X ..... e, for the respondent. ORDER This appeal is directed against OIO No. 08/VDR II/STAX/GNFC/COMMR/2010 dt. 28.05.2010. 2. The relevant facts that arise for consideration are the appellant herein is a registered service provider engaged in providing taxable services such as online information and data base access and / or retrieval services. The appellant is discharging the appropriate service tax liability on such services. The appellant are also providing services of digital signature certification on which service tax liability was not applicable as per the CBEC circular no.137/76/2008-CX(4), dt. 05.06.2008. The appellant has been availing benefit of Cenvat Credit of the service tax paid on various input services which are used by them fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such an order the appellant is before us. 3. The Ld. Counsel appearing on behalf of the appellant would submit that the provision of digital signature certification is not a service which cannot be considered as an exempted service as the said service is not taxable is the view which has been expressed by the CBEC in their circular dt. 05.06.2008. He would draw our attention to the definition of exempted services and submit that it would not encompose the services which are non-taxable as taxable services stand defined under various sub-clauses of Section 65(105). He would submit that when the services digital signature certification is not liable to levy itself would mean it is not a service which can be called as exempted services. It i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uld submit that the issue is now fairly settled by the Hon'ble High Court of Rajasthan in the case of Vodafone Digilink Ltd. vs. CCE, Jaipur-II 2013 (29) STR 229 (Raj.). After taking us through the facts of the case, and the facts of the case in Vodafone Digilink Ltd. vs. CCE, Jaipur-II, he would submit that facts are similar and there is no difference. It is his submission that the adjudicating authority was correct in coming to a conclusion that the appellant should be penalized. He reiterates the findings of the adjudicating authority. 6. In rejoinder, Ld. Counsel would submit that in the case of Vodafone Digilink Ltd. vs. CCE, Jaipur-II (supra) relied upon by the revenue, there is a specific finding of the Tribunal as well as Hon&# ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. Counsel may not carry their case any further as they have not clearly indicated by any correspondence to the revenue as to provision of the digital signature certification services. 11. In our considered view, the adjudicating authority has correctly come to the conclusion that appellant is required to pay the amount of ₹ 51,85,498/- through PLA. 12. Since the amount is payable through PLA the interest charged on the said amount is also correctly appropriated by the authority. 13. At the same time, we find strong force in the contentions raised by the Ld. Counsel that the amount of ₹ 51,85,498/- paid by the appellant through PLA / cash is over and above the same amount which has been debited by them during the period Octob ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Finance Act, 1994, are very harsh and unwarranted, in the peculiar facts and circumstances of this case. Keeping in mind that the appellant is subsidiary of a Government of Gujarat undertaking and also noting that appellant could have had a bonafide belief that the 'digital signature certification services' would not fall under the category of exempted services, by invoking provisions of Section 80 of the Finance Act, 1994, we hold that appellant has made out a reasonable and justifiable cause for setting aside the penalties. Invoking provisions of Section 80 of the Finance Act, 1994, we set aside the impugned order which visits the appellant with penalties under Section 76 and 78 of the Finance Act, 1994. 15. The appeals a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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