PHOENIX ENGINEERING Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) VIDE this appeal the appellant is challenging the confirmation of penalty under Sections 76 and 77 of the Finance Act, 1994.

(2.) BRIEF facts of the case are that the appellant was issued a show -cause notice to pay Service Tax on GTA Service after the amendment on Notification No. -ST, dated 31 -12 -2004. The Service Tax along with interest and penalties under Sections 76 and 77 of the Finance Act, 1994 was confirmed by the lower authorities. The appellant although admits the service tax liability but sought waiver of penalties under Section 76 of the Finance Act on the ground that they were not aware of the liability to pay service tax on GTA service. On pointing out by the revenue officers during the course of audit, they worked out the duty liability and deposited the same along with the interest and filed their service tax returns.

(3.) THE learned Advocate appearing on behalf of the appellant submits that as the levy on GTA service was introduced from 1 -1 -2005 and the appellant was not aware of their service tax liability, the benefit under Section 80 of the Finance Act is to be given to the appellant as there is no allegation of suppression in the show -cause notice. Moreover they themselves had paid the service tax along with interest on pointing out by the audit party. Hence, as per the provisions of Section 73(3) of the Finance Act, 1994, show -cause notice was also not warranted and, therefore, the penalties are not imposable on the appellant. He also submits that, the demand prior to 15 -10 -2007 is also time barred as there is no suppression is alleged against the appellant which is beyond the extended period of limitation.