2017 (6) TMI 431

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e are that the respondent is registered partnership firm engaged in the business of mining activities and transporting iron ore to their customers by road in a goods carriage and incurred freight charges. On gathering intelligence, the officers of the Central Excise (Preventive), Bellary Division, visited the business premises of M/s. Zeenath on 21.1.2006. On verification of records, they noticed that M/s. Zeenath were incurring the freight charges for transportation of iron ore to their customers through trucks and had availed the services of GTA for the same. In terms of Notification No.36/2004-ST, dated 31.12.2004 read with Rule 2(1)(d)(v) of the Service Tax Rules, 1994, the consignor or consignee who is one of the specified person and p....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....st of Rs. 2,31,368/- and the same was appropriated by the Commissioner. Further, the Commissioner, relying upon the Board's Circular No.341/18/2004 dated 17.12.2004, waived penalties invoking Section 80 of the Finance Act, 1994. 3. Heard both the parties and perused the records. 4. The learned AR submitted that the impugned order is not sustainable in law. He further submitted that once the extended period is invoked alleging suppression of facts with intend to evade payment of service tax then the Commissioner does not have the power to waive penalties since the instruction of the Board in Circular dated 17.12.2004 excluded cases involving fraud, collusion, suppression of facts or willful mis-statement or contravention of the provisi....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... was issued on 15.2.2007 after the expiry of more than one year when the entire dues had already been paid. He further submitted that Commissioner after knowing that the respondents are entitled to abatement, passed the order appropriating the amount paid but dropped the penalties relying upon the Board Circular, which is reproduced herein below: "In case of omission in payment of service tax or procedural lapses by persons liable to pay service tax on the goods transport by road, committed before 31st December 2005, the consequences should be limited to recovery of tax with interest payable thereon. No penalty should be imposed on such defaulters unless the default is on account of deliberate fraud, collusion, suppression of facts or wil....