CCE Vs. HIRA AUTOMOBILES LTD

JUDGEMENT

(1.) REVENUE filed this appeal against the order of the Commissioner (Appeals) whereby penalties under Section 76 & 78 of Finance Act were set aside.

(2.) AFTER hearing both sides and on perusal of the records, I find that the respondents were receiving commission from the customers for arranging loan from bank. The learned Chartered Accountant on behalf of the respondents submits that there was a doubt about levy of tax relating to services Motor Vehicles and Business Auxiliary Services for arranging finance. He also submits that they have deposited the tax in the month of November, 2006 for the period September, 2004 to March, 2006. Show cause notice was issued on 7.2.2008. The original authority confirmed the demand of tax of Rs. 11,72,392/ - and appropriated the amount as deposited by them and also imposed penalty of equal amount under Section 78 of the Act and penalty under Section 76 of the Act. The Commissioner (Appeals) set aside the penalties under Section 76 & 78 of the Act. The Commissioner (Appeals) observed as under: