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CUSTOM EXCISE & SERVICE TAX APPELLATE TRIBUNAL, MADRAS
VICE-PRESIDENT, MS. JYOTI BALASUNDARAM
Govardhan Enterprises -Appellant
Versus
Commissioner of Service Tax, Chennai -Respondent
FINAL ORDER NO. 734 of 2010 APPEAL NO. ST/530 of 2009
Decided On : 02-07-2010
M. Karthikeyan,C. Rangaraju
1. The appellants do not challenge the liability to service tax on advertisements on bus panels, bus stations, etc., and paid tax of Rs. 90,653. They challenged the imposition of penalty upon them under the provisions of sections 76 and 78 of the Finance Act, 1994, on the ground that they were not aware of their liability during the relevant period and in spite of raising this plea before the authorities below, no finding has been recorded thereon.
2. I have heard both sides. The assessees have contended even before the lower authorities that they were not aware of the liability to tax during the period in dispute. No statement admitting knowledge of liability has been recorded. The department has not discharged the burden of showing that non-payment during the relevant period was not due to lack of awareness, and with any deliberate intention to evade payment of service tax. I, therefore, set aside the penalties by extending the shelter under the provisions of Finance Act, 1994. Accordingly, I set aside the penalties under sections 76 and 78. Penalty imposed under section 77 is however upheld, since there is no reason to interfere with the same. The appeal is thus, partly allowed.
