Sakthi Promoters Vs. Commissioner of Central Excise, Coimbatore - Court Judgment |
| SooperKanoon Citation | sooperkanoon.com/942286 |
| Court | Customs Excise and Service Tax Appellate Tribunal CESTAT Chennai |
| Decided On | Jun-29-2010 |
| Case Number | Appeal No.ST/424 of 2009 |
| Judge | THE HONOURABLE MS. JYOTI BALASUNDARAM, VICE PRESIDENT |
| Appellant | Sakthi Promoters |
| Respondent | Commissioner of Central Excise, Coimbatore |
| Advocates: | Shri V.Viswanathan, Consultant. Shri T.H.Rao, SDR |
Excerpt:
i have heard both sides on the imposition of penalties under the provisions of section 76 and 78 of the finance act, 1994 for belated payment of service tax on construction of residential complex. i accept the plea of the assessees that there was reasonable cause for failure to pay tax within time as levy on such services came into effect only in june-05 and the period of demand is july-05 to september-06 in other words, due to the fact that the levy was in nascent stage, assessees were not aware of the levy. i therefore extend the protection under section 80 of the act by setting aside the penalties under section 76 and 78. penalty under section 77 of the finance act, 1994 is however upheld as there is no cause to set it aside. 2. the appeal is thus partly allowed as above.
Judgment:I have heard both sides on the imposition of penalties under the provisions of Section 76 and 78 of the Finance Act, 1994 for belated payment of service tax on construction of residential complex. I accept the plea of the assessees that there was reasonable cause for failure to pay tax within time as levy on such services came into effect only in June-05 and the period of demand is July-05 to September-06 in other words, due to the fact that the levy was in nascent stage, assessees were not aware of the levy. I therefore extend the protection under Section 80 of the Act by setting aside the penalties under Section 76 and 78. Penalty under Section 77 of the Finance Act, 1994 is however upheld as there is no cause to set it aside.
2. The appeal is thus partly allowed as above.