(1.) M /s. V.M. Engineering Works has been registered as a service provider of construction service and during the scrutiny of their periodical returns it was noticed that appellants had made payment of service tax belatedly in respect of two quarters from April, 2007 to December, 2007. Proceedings were initiated which resulted in imposition of penalty of Rs. 22,800/ - under Section 76 of the Finance Act, 1994 on the respondents. On an appeal filed by them, the Commissioner (Appeals) in the impugned order reduced the penalty from Rs. 22,800 to Rs. 8,000/ -.
(2.) THE Revenue is in appeal against the lenient view taken by the Commissioner (Appeals) as regards penalty leviable by resorting the Provisions of Section 80 of the Finance Act, 1994 on the ground that this case is not a fit case for lenient view under Section 80 of the Finance Act, 1994.
(3.) I have considered the submissions made by learned DR and the memorandum of appeal. I find that the Commissioner has considered the issue and for better appreciation I reproduce the relevant paragraphs of the order.