2011 (3) TMI 628

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.... K.K. Jaiswal, SDR, for the Respondent. [Order per : D.N. Panda, Member (J)]. -  The learned Counsel presenting the appeal submits that this appellant is having three grievances. The first one is that penalty ought not to have been levied under Section 78 of the Finance Act, 1994 when there was no proposition for such levy in the show cause notice. The second grievance is against levy o....

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.... infancy stage and several doubts arose regarding scope of levy. When scope of levy was clarified by CBEC Circular No. 87/05/2006-S.T., dated 6th November, 2006, there shall not be any penalty in view of the judgment of the Hon'ble High Court in CCE v. Auto World reported in 2010 (18) S.T.R. 5 (All.). Therefore, he submits that the appellant having discharged tax liability much before the issuance....

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....76 is concerned, there should be levy on the appellant for not taking registration. 6. As regards the education cess, his submission is that payment is a subject matter of record and if the appellant has discharged the liability, there is nothing wrong to verify the record and give credit. 7. Heard both the sides and perused the record. 8. We are not in disagreement with th....

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....iew of the Board was noticed by the Hon'ble High Court of Allahabad in CCE v. Auto World (supra). At the infancy stage of law, several controversies arose that is a reasonable cause that comes to the rescue of the appellant. We consider it proper that the present case in hand is a fit case for invoking Section 80 of the Finance Act, 1994. The appellant succeeds on the issue of levy of penalty Sect....