2008 (9) TMI 86

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....sultant, for the Appellant. Shri V.V. Hariharan, JCDR, for the Respondent. [Order]. - This is an application filed by M/s. Solomon Foundry for waiver of pre-deposit and stay of recovery of the penalties imposed under Sections 76, 77 and 78 of the Finance Act, 1994 (the Act) by the revisional authority, the Commissioner of Central Excise, Trichy. The appellants were found to have rendered the....

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....re, the contract did not contain any specific provision to recover the service tax from its clients. Therefore, they had to absorb the tax liability and they were not in a position to pass on the same to its clients. On this and other grounds narrated in the appeal a lenient decision is prayed for. It is reiterated that a large body of case law supported waiver of penalty on a defaulting assessee ....

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....on conferred on him under Section 80 of the Act. She also cited S-Mac Security Services Pvt. Ltd. v. CST, Bangalore - 2007 (6) S.T.R. 348 (Tri.-Bang.) [Stay Order Nos. 87 & 88/07 dated 11-1-2007.] in support of the plea that once the entire dues were paid before adjudication, the defaulter could not be penalized in the absence of mala fide intention to evade payment of duty. 4. Ld. JCDR submits....

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...., I refrain from imposing any penalty under Section 76, 77 & 78 of the Finance Act, 1994, since they were not aware of the Service Tax Rules and procedures due to ignorance and proper guidance from field formation." In the judgment of the Hon'ble High Court of Karnataka, their Lordships had upheld the order of the Tribunal to the effect that a revisional authority did not lave powers to revise ....