2006 (8) TMI 32

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....for the applicant Commissioner. The department's appeal is against the waiver of the penalty amounts and reduction in penalty amount by the lower appellate authority under Sections 76, 77 & 78 of the Finance Act, 94. 2. I find that the lower appellate authority has given the following findings in support of his decision: - 'I find that there is a reasonable ground for the failure on their pa....

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....ty whether covered by Service tax or not, therefore there was a reasonable cause on their part in not depositing the Service tax in time. Therefore, I am of the view that notwithstanding anything contained in Section 76 and Section 77 of the Act, the appellants are entitled for the benefit of Section 80 of the Act and accordingly, I hold that no penalty under Section 76 and Section 78 of the Act s....

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.... Steel v. State of Orissa - 1978 (2) E.L.T. (J159). Also, the Tribunal in the case of Smitha Shetty and Co. v. CCE - 2003 (57) RLT 543 (CEGAT) has held that when the service provider has acted bona fidely, even the minimum penalty shall be levied. I set aside the penalty under Section 76 and Section 78 applying ratio of aforesaid judgments accordingly. How ever, as regards imposition of penalty un....