2013 (11) TMI 401

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....uring the period April 2006 to March, 2009 towards construction services and maintenance services. Show Cause Notices was issued asking the assessee to pay the interest amounting to Rs.2,43,087/- for delayed payment of Service Tax, imposition of penalty for such delays under Section 76 of the Finance Act, 1944 and imposition of penalty under Rule 7C of the said Rules for delayed submission of the ST-3 Return. Adjudicating Authority confirmed the interest and imposed penalty of Rs . 10,000/- under Rule 7C of said Rules. He however dropped the penalty under Section 76 of the Act by exercising the powers vested in him under Section 80 of the said Act. Against this order, the Revenue filed an appeal to the Commissioner (Appeals), who held that ....

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....A.R. appearing for the Revenue has submitted that for waiver of penalty financial crisis cannot be considered within the purview of expression "Reasonable cause" used under Section 80 of the Finance Act, 1994 as held in Inma International Security Academy Pvt. Ltd. Vs. CCE, Chennai 2006 (1) S.T.R. 289 (Tri.-Chennai) and in case of Shayna Construction Vs. Commr . of Central Excise, Rajkot reported in 2010 (262) E.L.T. 1006 (Tri.- Ahmd .). He stated that during 2006-2009, the appellant has defaulted in filing the return in time and payment of service tax on the due date on a number of occasions. In view of these facts, he justified the view taken by the Commissioner( Appeals). 5. Heard both the sides and perused the records. Issue involved i....