MORVI EXPORT Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) THE challenge in these two appeals is the imposition of penalties under the provisions of Sections 76, 77 and 78. The reasons given by the Assessees before the authorities below for non -registration and non -payment of service tax on the services rendered by them is that they were dealing with export consignments and they were under the belief that such consignments were not liable to service tax and the moment they came to know about their liability, they got themselves registered and started paying tax. Nothing is coming out from any statement of the Appellants that they had knowledge of liability to pay and yet did not pay. The burden of proving that the Assessees were guilty of suppression lies upon the Revenue. As the burden has not been discharged, I, accept that these are fit cases for setting aside the penalty and, therefore, set aside penalties imposed under Sections 76 and 78 of the Finance Act, 1994 and uphold only the penalty imposed under Section 77 ibid.

(2.) The appeals are thus partly allowed.