COMMISSIONER OF CENTRAL EXCISE Vs. KAMLESH BASEKAR

JUDGEMENT

(1.) REVENUE has filed this appeal against the impugned order wherein penalties imposed on the respondents were dropped by exercising powers confirmed under Section 80 of the Finance Act, 1994.

(2.) THE brief facts of the case are that the respondent was engaged in providing service relating the Rent -a -Cab Scheme Operator. Service tax has been levied on the said service from 16 -7 -1997 and the respondent registered themselves on 13 -3 -2003. The respondent did not file any Service Tax -3 returns neither they have paid any service tax payable on the services rendered by them. The respondent were issued summoned for 18 -9 -2006, 4 -10 -2006 and 6 -12 -2006, statement of the proprietor was recorded, who stated that he has paying service tax from April, 2005. He further submitted that he has not paid service tax as he has not received the same from BSNL. Information received revealed that the respondent has rendered the aforesaid service to BSNL during the period 2001 -02 to 2005 -06 and received a sum of Rs. 19,70,076 as taxable service and did not pay the service tax to the tune of Rs. 1,11,630. A show -cause notice was issued the same was adjudicated confirming service tax demand of Rs. 1,11,630 along with interest and various penalties under Sections 76, 77 and 78 of the Finance Act, 1994. On appeal, the Commissioner (Appeals) dropped the penalties imposed under Sections 76, 77 and 78 of the Finance Act, 1994. Against the dropping of the penalty the revenue is before me.

(3.) NONE appeared on behalf of the respondent despite notice.