2005 (12) TMI 571

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.... M/s. Exide Industries Ltd. since 1998 and they were liable to pay tax from 1-9-1999 onwards and filed ST-3 return. The respondent took registration of service tax in October, 2003 and filed service tax return. Show cause notice was issued to them demanding service tax and imposing penalty. Show cause notice was adjudicated by the Deputy Commissioner, Central Excise who demanded service tax and imposed various penalties. The Commissioner (Appeals) in the impugned order upheld the levy and payment of service tax but he dropped the penalties imposed under Sections 75A, 76, 77 and 78 on the ground that under Circular F. No. 137/39/2004-CX. 4, dated 23-9-2004, a new Voluntary Disclosure schemes for voluntary disclosure was circulated by the Gov....

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.... recipient of this service. From 1999, the service provider becomes liable to pay service tax. The respondents were a small service provider as their total service tax liability for more than four years is Rs. 32,387/- which works out slightly more than Rs. 8,000/- per year. Therefore, they were under the impression that M/s. Exide Industries Ltd. may be paying taxes and they may be filing return. However, when the department pointed out, they took registration and submitted ST-3 return. They voluntarily paid an amount of Rs. 25,000/- and interest of Rs. 10,000/- before adjudication. They immediately complied with the letter of the department received in September, 2003 by taking registration, filing return and paying service tax in October....

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....to those service provider who had not come forward for registration and who have not paid service tax, then the present respondents should also be given benefit of non-levy of penalty. 5. I have considered the submissions of both the sides and I find that the Commissioner (Appeals) in the impugned order has dropped the penalty on the ground that under Circular F. No. 137/39/2004-CX. 4, dated 20-9-2004 when the assessees who did not at all comply with the Service Tax Law can be given immunity provided they pay the service tax with appropriate rate of interest, there is no tangible and logical reason as to why the law abiding assessee who had got himself registered more or less in time and had also started paying the service tax in ti....