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CUSTOM EXCISE & SERVICE TAX APPELLATE TRIBUNAL, MADRAS
MS. JYOTI BALASUNDARAM, Vice President
Sathya Engineering -Appellant
Versus
Commissioner of Central Excise, Trichy -Respondent
Final Order Nos. 745 & 746 of 2010 Appeal Nos. ST/30 & 31 of 2010
Decided On : 06-07-2010
R. Srinivasan,T.H. Rao
1. The issue common in both these appeals is penal action taken against the assessees under the provisions of sections 77 and 78 of the Finance Act, 1994.
2. I have heard both sides. The services provided by the assessees are manpower recruitment and supply. Their contention that being individuals, they were not aware of their liability to pay service tax is plausible. The Department has not discharged the burden of establishing the knowledge on their part of liability to pay tax during the period in dispute, so as to hold them guilty of suppression. I, therefore, set aside the penalty on both the assessees under section 78 of the Finance Act by extending the protection under section80 ibid. However, I see no reason to interfere with the imposition of penalty under section 77 and accordingly, uphold the same.
3. The appeals are thus partly allowed as above.
