RAJARANI EXPORTS Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) THE assessees are aggrieved by the imposition of penalties imposed under the provisions of Sections 76 and 78 of the Finance Act, 1994 for non -payment of service tax within time - they do not challenge the levy of tax which they have paid together with interest.

(2.) I have heard both sides. Nothing comes out in the statement of Shri K.L. Rajasekhar, Managing Partner of the assessee -company that the assessee was aware of the liability to tax and yet did not pay service tax. The burden on the Revenue to establish suppression on the part of the assessee with intention to evade payment of tax has not been discharged. I, therefore, set aside the penalties imposed under Sections 76 and 78 - the assessee do not challenge the penalty of Rs. 1,000 imposed under Section 77 of the Act - and allow the appeal.