SONAL VYAPAR LTD. Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) THE appellants herein challenge the imposition of penalty of Rs. 2,01,873 imposed under the provisions of Section 78 and penalty of Rs. 200 per day imposed under Section 76 of Chapter V of the Finance Act, 1994, on the ground that the demand of service tax, although paid together with interest, is barred by limitation.

(2.) I have heard both sides. The assessee's stand as reflected in the statement of Shri V. Agrawal, Director of the Company, is that whenever they were incurring any freight, they were paying service tax on Goods Transport Service and whenever the CHA was incurring any freight, the assessees were not paying the service tax on Goods Transport Service because they were under the bona fide impression that the liability to pay tax was on the CHA, and not upon them. No contrary evidence has been brought on record by the revenue. In these circumstances, I accept the contention of the assessees that the department has not established that there was any suppression on their part so as to invoke the extended period of limitation against them for confirmation of the demand. I therefore, accept the contention of the assessees that they are not liable to penalty and accordingly, set aside the penalty and allow the appeal.