2011 (2) TMI 1197

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....d services under the category "Manpower Recruitment and Supply Agency Services" to M/s. L.G. Balakrishnan Industries. They have not registered themselves for rendering the said services and have not paid the service tax during the period June 2005 to June 2007. On being pointed out by the Department that the services rendered by them were liable to service tax, they promptly paid the service tax amounting to Rs. 7,90,780/- along with interest of Rs. 99,687/- for the past period. The amount was actually paid on 9-7-2007, 27-10-2007 and 6-11-2007. They also took service tax registration and were discharging their obligation to pay service tax for subsequent period. A Show Cause Notice dated 17-2-2009 was issued proposing confirmation of servi....

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....e of the wages payable to the labour force whom the assessee had supplied to the service receiver. Therefore, the remains to the assessee may be a pecuniary subsistence merely for simple survival. ■       The assessee a small unit run with a small turnover after making payments barely sufficient to meet both ends meet sustenance living a state of existence the bread and butter reality imposing of penalty would be actually actually crippling him. ■       Though it remains a fact that he had not obtained registration and not paid service tax till it was pointed out, at present i.e. after registration he has a proven track record of compliance with service tax procedures....

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....erused the records. Section 80 of the Finance Act, 1994 reads as under :- "Notwithstanding anything contained in the provisions of section 76, section 77, section 78 or section 79, no penalty shall be imposable on the assessee for any failure referred to in the said provisions if the assessee proves that there was reasonable cause for the said failure" 5.2 Therefore, the finding of the Commissioner (Appeals) that there is no provision in the law to drop the proposal for imposing penalties under Section 76, 77 and 78 invoking the provisions of Section 80 of the Finance Act, 1994 is clearly erroneous. On this short ground alone the order of the Commissioner (Appeals) does not deserve to be sustained. 5.3 The findings of the origi....