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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 ..... 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 Order-in-Original, Revenue has preferred present appeal. 3. The respondent is absent on call. Heard the Learned A.R. for Revenue and perused the record. For the purpose of convenience grounds of appeal raised by Revenue are reproduced below:- "The Committee of C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 counsel for the Revenue we are of the view that the provisions of Section 80 of the Act in un-mistakable terms provide that despite the provisions of Section 78, no penalty should be imposed on the assessee for any failure referred in that Section if the assessee has shown that there was reasonable cause ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 (Tri.-LB). In the impugned case also, State Police Department has provided Security Agency Services to various Banks, which are mostly Public Sector Banks. There is no material on record to impute mala fides. Therefore, following the provisions of Section 80 of the Finance Act, 1994, I hold that penalty un ..... X X X X Extracts X X X X X X X X Extracts X X X X
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