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TMI Blog2018 (2) TMI 1564X X X X Extracts X X X X X X X X Extracts X X X X ..... Per: Anil G. Shakkarwar The present appeal is arising out of Order-in-Original No.13/COMMR./ST/GZB/2013-14 dated 30/10/2013 passed by Commissioner of Customs, Central Excise Service Tax, Ghaziabad. The present appeal is filed by Revenue. 2. Brief facts of the case are that the respondent were issued with a show cause notice dated 24/04/2012. One of the proposal in the said show cause notice was to impose penalty under Section 78 of the Finance Act, 1994 on the respondent. The said show cause notice was adjudicated through impugned Order-in-Original wherein the Learned Original Authority dropped the proposal of imposition of penalty under Section 78 of Finance Act, 1994 on the respondent. Aggrieved by the said part of the impugned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... impugned Order-in-Original is reproduced below:- 5.9 I find that the Noticee have been show caused for imposition of penalty under Section 78 of Finance Act, 1994. However, I observe that being a State Government Department, there exist no mala fide intention or willful intent of evading payment of service tax on the part of the Noticee. Hence, I hold that imposing penalty under Section 78 is not justified and proper. The Noticee have also made a reference to Police Headquarters seeking a clarification in the matter of payment of service tax. Hence, it is not a case of flagrant violation of law. Commissioner of Central Excise, Jalandhar Versus Darmania Enterprises 2009 (14) S.T.R. 0741(P H). Having heard learned counse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... men to the BSNL, which is a Public Sector Undertaking. In view of that, imposition of penalty is not warranted. Accordingly, the demand of tax along with interest is upheld and penalties are set aside. 5.9.2. Section 80 of the Finance Act provides for exemption from penalty on the assessee if there was reasonable cause for such failure. In the instant case, reference by State Police Department, Ghaziabad to Police Headquarters, Allahabad reveal that the Noticee are not aware whether service tax is leviable or not. Thus, there is a reasonable cause for their failure to take registration and pay tax due. I rely upon the ratio of judgment in Garg Enterprises 2002 (145) E.L.T. 303 (Tri.-Ban) and Eta Engg. Ltd. 2006 (3) S.T.R. 429 ( ..... X X X X Extracts X X X X X X X X Extracts X X X X
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