TaxTMI 
TaxTMI 
2009 (4) TMI 123
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....Precision Components (P.) Ltd., Solapur for transporting their employees from Solapur city to their factory situated at Chincholi, MIDC, Solapur. They were registered with the revenue in terms of section 69 of Chapter V of the Finance Act, 1994. It was found during a scrutiny of records that they have entered into an agreement with M/s. Clancey Precision Components (P.) Ltd., Solapur for supply of two buses for transporting their employees. It was further noticed that during the period April, 2005 to July, 2006 the appellants have collected service lax amounting to Rs. 225,784 from M/s. Clancey Precision Components (P.) Ltd., Solapur but the same was not deposited to the department. The appellants claimed to avail exemption in terms of Noti....
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....ntral Excise may call for the record of a proceeding under this Chapter in which all adjudicating authority subordinate to him has passed any decision or order and may make such inquiry or cause such inquiry to be made and, subject to the provisions of this Chapter, pass such order thereon as he thinks fit." It is submitted that there is no power under section 84 directing Deputy Commissioner of Central Excise to review the file and take necessary action. 4. The ld. counsel for the appellants further submitted that they have paid the entire amount of service tax amounting to Rs. 2,25,784 along with interest and also the differential service tax amount of Rs. 322 vide TR-6 challans. The appellants submitted that no penalty can be imposed o....
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....imposed merely because it is lawful to do so. Whether penalty should be imposed for failure to perform a statutory obligation is a matter of discretion of the authority to be exercised judicially and on consideration of all the relevant circumstances. Even if a minimum penalty is prescribed, the authority competent to impose penalty will be justified in refusing to impose penalty, where there is a technical or venial breach of the provisions of the Act or where the breach flows from the bona fide belief that the offender is not liable to act in the manner prescribed in the statute". The appellants submitted that they were under bona fide belief that they were not liable to the service tax during the period under dispute and they relied on t....
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....e appellants. On pointing out that the appellants were liable to pay the service tax, they made partial payments before adjudication of the show cause notice issued to them and the remaining amount was paid subsequently which clearly revealed that the appellants were having knowledge and deliberately indulged into the acts of recovering and non-payment of service tax. As the Commissioner of Central Excise, Pune III not satisfied with the order-in-original directed for revision of the order passed by the original adjudicating authority. He submitted that the appellants have not challenged the taxability of the 'tour operator services' before the lower authorities as well as in their instant appeal memo. He has reiterated the contents and the....