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CUSTOM EXCISE & SERVICE TAX APPELLATE TRIBUNAL, MADRAS
Vice President, SMT. JYOTI BALASUNDARAM
Simugan Cell World -Appellant
Versus
Commissioner of Central Excise (Service Tax), Trichy -Respondent
FINAL ORDER NO. 858 OF 2010 APPEAL NO. ST/495 OF 2009
Decided On : 06-08-2010
M. Saravanan,Ms. Indira Sisupal
1. The assessees do not press the challenge to the demand of service tax which is therefore upheld. The challenge is to the imposition of penalties under provisions of sections 76, 77 and 78 of the Finance Act, 1994.
2. I have heard both sides. The contention of the assessees is that there was no intention to evade payment of duty as their activity of sale of ‘SIM card’ has been held to be eligible to exemption available to sale of goods under Notification No. 13/2003-S.T., in the case of CCE v. Garage Tools Corpn. [2009]
3. I have considered the rival submissions. Although the assessees are not correct in contending that they had not received any amount as it is an admitted position that a meagre amount of commission was received, the other argument that in the light of the Tribunal’s order cited supra, it is a question of interpretation as to whether they are liable to pay service tax merits acceptance. I, therefore, set aside the penalties under sections 76 and 78 by holding that reasonable cause has been made out in terms of section 80 of the Finance Act, 1994. Penalty under section 77 is upheld. The appeal is thus partly allowed as above.
