CITY TRAVEL SERVICES Vs. COMMISSIONER OF C. EX.

JUDGEMENT

(1.) M /s. City Travel Services have filed this appeal along with an application for stay of operation of the older. In the impugned order, the Commissioner (Appeals), Coimbatore has sustained the demand of duty of Rs. 15,029/ - being the Service Tax due on "Railway Ticket Booking Services" rendered by the appellant between "16 -8 -2002 to 31 -3 -2004. He has also confirmed the interest demanded but reduced the penalty from Rs. 15,029/ - to Rs. 4,000/ -. This penalty was imposed under Section 76 of the Finance Act and for non -payment of the lax due.

(2.) AFTER hearing both sides, 1 have decided to dispose the appeal itself. The appellant has prayed for waiver of interest and penalty ordered in the impugned order. It is submitted that the assessee is an illiterate lady who is not conversant with the provisions of Service Tax which is a new levy. Moreover, new services are brought under the tax net every year. It is also submitted that as per an advertisement published in the newspaper Hindu on 1 -11 -2004, there would be complete waiver of penalty to those service providers who got registered before 30 -11 -2004 and paid Service tax. The advertisement also gave the impression that no interest shall be leviable in such cases.

(3.) ON a careful consideration of the facts of the case, 1 find that the impugned order has been passed in accordance with law and does not call for interference. However, I find that penalty of an amount of Rs. 1,000/ - would meet the ends of justice, especially in view of the amnesty scheme announced by the Government in November, 2004. The penalty' is accordingly reduced to Rs. 1,000/ -(Rupees One thousand only/ -). The stay application is dismissed. The appeal is partly allowed as above.