2010 (1) TMI 367

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....p the appeal for disposal in the absence of any representation from the respondent. 3. Heard the learned SDR and perused the records. 4. The issue involved in this case is regarding the Service tax liability of the respondent under the category of 'Cable Operator Services' for the period September, 2003 to March, 2005. It is seen from the records that the respondent had not taken the registration and had not discharged the Service tax liability. Preventive unit of the Udupi Division on a surprise visit to the factory of the respondent pointed it out that he is liable to pay Service tax, on being pointed out, respondent paid the Service tax along with interest. Show cause notice was issued for confirmation of the amount of Service tax ....

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.... of interest on belated payment of Service tax liability. 6. We have considered the submissions made by the learned SDR and perused the records. 7. On perusal of the records, we find that the respondent herein discharged the entire Service tax liability and the Education Cess and interest as was indicated by letter dated 30-11-2005 by the authorities to the respondent. The said amount was paid by the respondent on 9-12-2005. Show cause notice was issued to the respondent on 8-8-2006. It can be seen from the records that the respondent had discharged the Service tax liability which escaped the tax net on being pointed out by the authorities. We find that the provisions of Section 73(3) of the Finance Act would squarely cover this kind ....

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....tax liability is paid settled under 73(3), the penal provisions do not get attracted, we find that learned Commissioner (Appeals) has relied upon the said decision by setting aside the penalties imposed. We are in agreement with the learned Commissioner (Appeals) order that the penalty liability under Sections 76 and 78 can be set aside in this case, as the respondent is a small time cable operator, may be unaware of the provisions of the Finance Act, 1994, as regards the applicability of the Service tax liability to "Cable Operator Services'. He being a small person, he could not have been aware of the provisions. In view of this, invoking the provisions of Section 80 of the Finance Act, 1994, we hold that the impugned order to the extent ....