9911796707
TMI Blog2007 (2) TMI 663X X X X Extracts X X X X X X X X Extracts X X X X ..... state the case and refer the following question of law for the decision of this Court : "Is the Tribunal empowered to reduce the penalty under ss. 67 and 68 of the Finance Act, 1994 ?" 3. As we shall presently notice that in the circumstances and on the facts found the aforesaid question is of academic importance for the present purposes. 4. The respondent is a provider of services as travelling agent and is filing its regular returns and paying service-tax since September, 1999. A show-cause notice was issued to the respondent by the adjudicating authority of the Central Excise Act as to why a penalty should not be imposed upon them under the provisions of s. 70 of the Finance Act, 1994, and why the amount of service-tax rec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The assessee has further submitted that they did not have any intention to escape from or breach the Service-tax Rules and requested to decide the case with a sympathetic view in the matter." These facts were not in contention and were accepted by the adjudicating authority and considering these facts he was of the opinion that it is a fit case for taking a lenient view of the matter and considering the provisions of s. 77, he imposed the minimum imposable penalty under the aforesaid provisions which amounted to ₹ 12,900 and under s. 76 and ₹ 9,863 under s. 76. 5. The order of the adjudicating authority dt. 28th Nov., 2000, was affirmed on appeal by the CIT(A) vide his order dt. 21st July, 2001. 6. On further appeal, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of s. 80, which obliterates liability to the levy of penalty, the adjudicating authority has used the expression 'lenient', that those grounds are enough to take a lenient view and breach of these grounds were not disputed by the Revenue at any time. The bona fide belief held by the assessee that the service-tax on travelling service was provided by the Indian Airlines, who is the principal, and the assessee was only acting as its agent, the liability to pay service-tax was of the principal, the assessee has not filed the return and paid service-tax thereon. It was only when the matter was taken up with the Indian Airlines on receipt of notice that it became clear to the assessee that while selling tickets of the Indian Airlines a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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