2011 (2) TMI 412

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....ereinafter referred as Bhawani for short) is engaged in providing "Manpower Recruitment Services". There was delay in payment of service tax during the period from October 2006 to December 2006 and January 2007 to March 2007 and ST-3 returns for the period from October 2006 to March 2007 were filed late. A show cause notice was issued on 22.5.2008 which culminated into adjudicating order dated 18.....

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....owing observation :-     "9. This Court in the Tax Appeal No.1367 of 2009 has taken the view that on a conjoint reading of sections 76 and 80 of the Act, it is not possible to envisage a discretion as being vested in the authority to levy a penalty below the minimum prescribed limit. If the authority imposing the penalty is not entitled to levy below the minimum prescribed, the app....

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....l filed by the Revenue has to succeed. In this case, the penalty was reduced from Rs.44,600/- to Rs.10,000/- but as per Section 76 of Finance Act, 1994, penalty has to be either Rs.44,600/- or Nil, if it is considered that Bhawani had shown reasonable cause and therefore, discretion to waive penalty could be exercised. In this case, only Revenue is in appeal against the order of Commissioner (Appe....