CHANDRASEKAR AND CO. Vs. CCE

JUDGEMENT

(1.) THE assesses challenge the imposition of penalty under the provisions of Section 78 of the Finance Act, 1994, on the ground that non -payment of service tax on Commercial construction complex (for LIC) was not deliberate and intentional and therefore extended period is not attracted against them.

(2.) There is no finding by the authorities below that the assessees had knowledge that they were liable to pay service tax on their activity of construction of commercial complex for LIC which is a Public Sector Undertaking and therefore, the charge of suppression has not been established against them. In this view of the matter, I hold that the provisions of Section 78 are not attracted against the assessees and they are, therefore, not liable to penalty under that Section. I therefore set aside the penalty and allow the appeal.