2009 (11) TMI 226

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....y, 2002 period against the appellant along with interest and also imposition of penalties on the appellant under sections 75A, 76, 77 and 78 of the Finance Act,1994. The penalty imposed under sections 76 and 78 are Rs. 44,737 each. 2. Heard both the sides. 2.1 Ms. Renu Gupta, Ld. Counsel for the appellant pleads that the appellant is a sole proprietorship concern; that they are providing rent-a-cab service which attracts service tax under section 65(105) of the Finance Act,1994; that the appellant had provided rent-a-cab service to M/s. IFFCO during the period from October, 2000 to May, 2002; that being a small service provider, they were not aware of the provisions of service tax and since the service tax was neither being reimbursed to....

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....reduced penalty of 25 per cent of duty involved is imposable. 3. Shri S.K. Bhaskar, the Ld. DR, defending the impugned order pleaded that no reasonable cause has been shown for the inability of the appellant to discharge their tax liability and hence the provisions of section 80 are not applicable and the penalties upheld are justified. 4. I have carefully considered the submissions from both the sides and perused the records. There is no dispute about the fact that during the period of dispute, the appellants were providing rent-a-cab service to IFFCO and during that period, this service was taxable under the provisions of section 65(76) of the Finance Act,1994. There is also no dispute about the fact that the appellant had neither t....