CCE Vs. VIJAY LAXMI

JUDGEMENT

(1.) AFTER hearing both the sides and on perusal of the records, it is seen that the Respondent is engaged in providing services of a rent -a -cab operator. The Respondent provided rent -a -cab services to M/s. Northern Coal Fields during the financial year 2000 -01 to 2003 -2004 under a contract and there was no condition for payment of service tax. However, after receipt of the show cause notice, the Respondent deposited the tax of Rs. 15,390/ - along with interest of Rs. 4,042/ -. The Adjudicating Authority confirmed the demand of tax and appropriated the amount as deposited by them. He also imposed penalty of equal amount under Section 78 and penalty of Rs. 5,000/ - each under Section 75A and 77 of the Finance Act, 1994. The Commissioner (Appeals) set aside the penalties. Hence, the Revenue filed this appeal.

(2.) THE main contention of the ld. DR is that ignorance of law cannot be reason for setting aside the penalties. He relied upon the decisions of the Tribunal.

(3.) IN view of that, Section 80 of the Finance Act, 1994 is rightly invoked by Commissioner (Appeals) in the present case. Accordingly, I do not find any reason to interfere the order of the Commissioner (Appeals). The appeal filed by the Revenue is rejected.