2007 (7) TMI 140

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....only challenge is regarding imposition of penalty under Section 78 of Finance Act, 1994. 2. The appellants were providing outdoor catering service and Service Tax was levied on outdoor caterer with effect from 10-9-04. In the month of August 2005, summons were issued to the appellant and the appellant immediately got registered as outdoor caterer with the Revenue and also paid the Service Tax o....

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....nance Act and Rules. The appellants submitted that as the levy on outdoor caterer was first time levied with effect from 10-9-04, therefore, being new levy the appellants were not aware of the levy and when Revenue pointed out they immediately paid the amount of Service Tax along with interest. The appellant contention is that Section 80 of the Finance Act provided that notwithstanding any point i....

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....ase Service Tax is not paid by way of fraud, suppression of facts, collusion or wilful mis statement the section also provided that the penalty is imposable in case of contravention of any provision with intent to evade payment of duty. Further Section 80 of the Act provides that provisions of Section 78 will not be applicable where the assessee prove that there was reasonable cause or the said fa....