ORDER
M.V. Ravindran, Member (J)
1. This appeal is directed against Order-in-Appeal dated 31.8.2005 which set aside the penalty imposed on the respondents under Section 78 of the Finance Act, 1994.
2. The relevant facts that arise for consideration are that the respondents were engaged in the business of providing service of tour operator and did not get themselves registered with the authorities. Show cause notice was issued to the respondents demanding service tax for the period 2000-01 and 2002-03. That show cause notice was adjudicated and demand of service tax was confirmed and penalty imposed under Section 77 & 78 of the Finance Act, 1994. On appeal learned Commissioner (Appeals) set aside the penalties imposed under Section 78 on the ground that the respondent had given sufficient cause for the negligence in discharging service tax liability.
3. Learned JDR submits that the Commissioner (Appeals) has not considered the fact that the respondents had not discharged the service tax liability for the year 2000-01, 2002-03 which in itself indicates that the respondent is callous in approach towards discharge of service tax liability.
4. Learned Consultant on behalf of the respondent submits that the entire amount of service tax demand was paid by them in the month of November, 2004. He submits that they are covered by the Extra Ordinary Tax Payer Friendly scheme as introduced by the Government on 22nd September, 2004.
5. Considered the submissions made by both sides and perused the record. It is seen from the record that the respondent had discharged the service tax liability before November, 2004. The Extra Ordinary Friendly Scheme for non-imposition of penalty was introduced by the Government on 22.9.2004 and gave immunity to those tax payers who discharged service tax liability along with interest before 30.10.2004. The said friendly scheme was extended by one more month up to 30th November, 2004 vide Circular DOF. No. 137/39/2004-CX-4 dated 29.10.2004. The said Circular reads as under:
In continuation of Trade Notice No. 18/2004, Service Tax, Dated: 23.09.2004, the trade is hereby informed that the last date of the Extra-Ordinary tax payer friendly scheme for instant registration of Service providers has been extended upto 30th November, 2004.
6. I also find force in the contention of the learned Consultant that they have discharged the service tax liability before expiry of Extra Ordinary Friendly Scheme, hence, there cannot be any penal action against them. This view is fortified by the decision of the Tribunal in the case of Bharat Securities and Services wherein the Tribunal has held as under:
4. Revenue filed these appeals against the order-in-appeal whereby the penalties imposed on respondents were set aside as the respondents paid Service tax along with interest prior to 23.9.2004. The Commissioner (Appeals) in the impugned order held that a Voluntary Disclosure Schemes known as Extra Ordinary Tax Payer Friendly Scheme was circulated vide letter dated 23.9.2004. Under this scheme any service provider who got registered up to 30.10.2004, are not liable for any penal action. The Commissioner (Appeals) held that in view of the immunity from penal action under this Extra Ordinary Tax Payer Friendly Scheme, no penalty is imposable on the respondents, as they have paid service tax prior to 30.10.2004.
5. The contention of the Revenue is that the respondents are registered prior to the Extra Ordinary Tax Payer Friendly Scheme and not registered this immunity scheme. Therefore, are liable to penal action.
6. I find that the service provider who registered and paid service tax during Extra Ordinary Tax Payer Friendly Scheme up to 30.10.2004, not liable to any penalty. Therefore, I find no infirmity in the finding of the Commissioner (Appeals) that the respondents to pay service tax along with the interest prior to 30.10.2004 are also not liable for penalty. In view of these circumstances, I find no merit in the appeals. Therefore all the appeals are dismissed.
Accordingly, I find that the issue is squarely covered by the decision of the Tribunal in the case of Bhrat Securities & Services (supra). Respectfully following the ratio of the said decision I find no merit in the appeal filed by the Revenue and the same is dismissed.
(Dictated & pronounced in the Open Court.)