COMMISSIONER OF CENTRAL EXCISE Vs. PRATIK ENTERPRISES

JUDGEMENT

(1.) The Commissioner of Central Excise, Daman in this appeal under Section 35G of the Central Excise Act, 1944 has challenged order dated 1st July, 2009 , 2010 (17) S.T.R. 144 (T) made by the Customs, Excise and Service Tax Appellate Tribunal (the Tribunal) proposing the following two questions:

(2.) The Respondent is a proprietary firm engaged in clearing and forwarding services. A search came to be conducted on the business premises of the Respondent pursuant to which show-cause notice came to be issued which culminated into an order dated 14th March, 2008 made by the adjudicating authority whereby service tax of Rs. 69,038/- came to be confirmed under Section 73(1)(a) of the Finance Act, 1994 (the Act)-with interest and separate penalties under Sections 75A, 76, 77 and 78 of the said Act. Being aggrieved, the Assessee preferred appeal before the Commissioner (Appeals) but did not succeed. The Assessee carried the matter in second appeal before the Tribunal who set aside the penalties and allowed consequential relief to the Assessee.

(3.) Mr. R.J. Oza, learned Senior Standing Counsel appearing on behalf of the Appellant assailed the impugned order of the Tribunal by reiterating the rea-soning adopted by the adjudicating authority and the Commissioner (Appeals). It was submitted that the Tribunal was not justified in extending the benefit of Section 80 of the Act to the Respondent Assessee even though no reasonable cause for non-payment of service tax had been made out in the facts and circumstances of the case.