COMMISSIONER OF CENTRAL EXCISE Vs. J. DHANRAJ

JUDGEMENT

(1.) IN this case, Commissioner (Appeals) has set aside the penalty imposed by the adjudicating authority under Section 78 of the Finance Act, 1994, while upholding the demand of service tax on Manpower Recruitment Service together with interest. The revenue has challenged setting aside of the penalty.

(2.) I have heard both sides. The lower appellate authority has extended the benefit in terms of Section 80 of the Finance Act, 1994 by accepting that the appellants had put forth reasonable cause for non -payment of the tax. There is no challenge to the extension of protection in terms of Section 80 in the appeal filed by the revenue. The only ground in the appeal of the revenue is that Section 78 provides for imposition of penalty.