2012 (11) TMI 652

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....in setting aside the penalties imposed under section 76, section 77 and section 78 of the Act, when the respondent did not prove any reasonable cause for their failure to comply with the provisions mentioned in section 80 of the Act. In the absence of any reasonable cause and when the case involves suppression of facts, whether waiver of aforesaid penalties by invoking section 80 of the Act was legal and correct? (2) Whether the order of the Tribunal is legally sustainable, in view of erroneous findings and misinterpretation of statutory provisions?" 2. The respondent-assessee, which is engaged in the manufacture of Hot Rolled Steel Plates and Coils, etc. imported various capital goods and raw materials like Plant and Machinery, HR St....

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.... before the Tribunal. During the course of hearing, the learned counsel for the assessee stated that the assessee does not dispute the demand of service tax and interest. The Tribunal, after considering the submissions advanced by the respective parties, was of the view that the assessee had shown reasonable cause for the failure referred to under the said provisions as contemplated under section 80 of the Act and set aside the penalties. 4. Mr. Darshan Parikh, learned Senior Standing Counsel for the appellant, assailed the impugned order by submitting that the provisions of section 80 of the Act can be invoked only if the assessee proves that there was reasonable cause for such failure. In the present case the assessee had not disputed ....