2006 (12) TMI 460

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.... order-in-appeal dated August 31, 2005 which set aside the penalty imposed on the respondents under section 78 of the Finance Act, 1994. The relevant facts that arise for consideration are that the respondents were engaged in the business of providing service of tour operator and did not get themselves registered with the authorities. Show cause notice was issued to the respondents demanding se....

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....as paid by them in the month of November, 2004. He submits that they are covered by the Extraordinary Tax Payer Friendly Scheme as introduced by the Government on September 22, 2004. Considered the submissions made by both sides and perused the record. It is seen from the record that the respondent had discharged the service tax liability before November, 2004. The Extraordinary Friendly Scheme....

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....rdinary Friendly Scheme, hence, there cannot be any penal action against them. This view is fortified by the decision of the Tribunal in the case of Bharat Securities and Services wherein the Tribunal has held as under: "4. Revenue filed these appeals against the order-in-appeal whereby the penalties imposed on respondents were set aside as the respondents paid service tax along with interest p....

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....he service provider who registered and paid service tax during Extraordinary Tax Payer Friendly Scheme up to October 30, 2004, not liable to any penalty. Therefore, I find no infirmity in the finding of the Commissioner (Appeals) that the respondents to pay service tax along with the interest prior to October 30, 2004 are also not liable for penalty. In view of these circumstances, I find no merit....