K. GOPALAKRISHNAN Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) This appeal challenges the confirmation of penalties under Sections 76, 77 and 78 of the Finance Act, 1994 (in short 'Act'). The assessee is a proprietorship which had registered itself as a Mandap Keeper in terms of the Act. A show cause notice was issued, after an investigation, on 27-3-2007, to the effect that the receipts relating to amenities furnished at the Mandap had not been offered to tax. The show cause notice proposed the levy of Service Tax along with interest and penalties under Sections 76, 77 and 78 of the Act for contravention of the provisions of Section 68 as well as suppression of facts and non-declaration of the correct value of Service Tax with intent to evade payment of appropriate tax.

(2.) An Order-in-Original dated 21-10-2008 was passed by the Assistant Commissioner of Service Tax confirming the levy of Service Tax, but dropping the proposal for levy of penalties under Sections 76, 77 and 78 of the Act.

(3.) The assessing authority took into account the statements of the assessee to the effect that he was 59 years old at that particular time and medically unfit on account of an accident. It was also specifically noted by the Officer that when the lapse was pointed out to the assessee at the time of inspection on 17-5-2007, he immediately came forward to pay the differential Service Tax and co-operated fully in all proceedings in this regard. The proceedings for levy of penalty were thus dropped by the assessing officer on application of mind to the facts and circumstances involved.