CAUVERY TRAVEL LINKS Vs. COMMISSIONER OF SERVICE TAX

JUDGEMENT

(1.) SINCE both the appeals involve the same issue, even though separate adjudication orders have been passed, both the appeals are taken together and a common order is passed.

(2.) NONE is present on behalf of the Appellants. Heard the learned SDR. She relies upon the following two decisions to support her contention that payment of cash before the issue of show cause notice cannot be a ground for waiver of penalty and also that if the details were not furnished with the department, penalty under Section 77 was to be imposed:

(3.) I have considered the submissions made by the learned SDR. I find that in this case before the issue of show cause notice, Appellant had paid Service Tax and interest. Till then they did not pay the Service Tax, since they were advised by Cab Operators Association that the association was pursuing the matter and they should wait. Having regard to this situation, I find nothing wrong in the view taken by the original Adjudicating Authority that when the Service Tax was proposed to be levied on rent -a -cab service, the Appellants did not register themselves and pay Service Tax in view of the advice given by their association. Therefore a lenient view was taken. Very fact that Section 80 of the Finance Act does not exclude cases of evasion of Service Tax by suppression, mis -statement etc. invoking extended period for the purpose of waiving penalty would show that it will not be necessary that in every case where the demand for Service Tax has been confirmed, penalty has to be imposed if extended period has been invoked. Therefore, I find that view taken by the Commissioner is not sustainable and accordingly, allow the appeals with consequential relief to the Appellants.