R.R. CONSTRUCTION COMPANY Vs. CCE

JUDGEMENT

(1.) THE appellant filed this appeal against imposition of penalty under Section 76, 77 and 78 of the Finance Act, 1994.

(2.) THE relevant facts of the case, in brief, are that the appellants are engaged in providing services of 'commercial or industrial construction'. The Service Tax was introduced on 10.9.2004. The appellant entered into an agreement with M/s. Allen Career Institute, Kota dated 2nd June, 2004 for construction. The appellant received the payment during the period September, 2004 to June, 2005. Thereafter, it came to the notice the levy of service tax on commercial construction. They obtained registration under the said Act on 3rd August, 2005. The Superintendent of Service Tax by letter dated 12.8.2005 directed the appellant to pay the tax and to file the returns. The appellant deposited the tax on 28th of August, 2005. The adjudicating authority confirmed the demand of tax and appropriated the tax along with interest, which has been deposited before the issue of show cause notice. He imposed penalty under Section 76 of Rs. 100/ - per day from the date when the Service Tax became payable till actual date of payment and penalty of Rs. 500/ - under Section 76 and the penalty of equal amount of tax under Section 78 of Finance Act, 1994. The Commissioner (Appeals) upheld the adjudication order.

(3.) THE ld. Advocate submits that the appellants deposited the tax along with interest before the issue of the show cause notice and, therefore, the imposition of penalty is unwarranted. He relied upon the decision of the Hon'ble Rajasthan High Court in the case of Union of India v. T.P.L. Industries Ltd. . He further submits that the appellant voluntarily obtained registration and deposited the tax along with interest before issue of the show cause notice and, therefore, there is no suppression of fact with intent to evade payment of tax and Section 78 cannot be invoked. He also submits that the findings of both the authorities below that the officers detected the non -payment of tax is without any basis.