ABS INC. Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) AS the appellants have deposited entire amount of Service Tax, I dispense with the condition of pre -deposit of penalties imposed under various sections of Finance Act, 1994 and proceed to decide the appeal itself.

(2.) THE appellants are engaged in the business of Commission Agent, which service is taxable under the category of Business Auxiliary Services. However, the said services were exempted from payment of service tax after 8 -7 -2004 vide Notification No. 13/2003. The said Notification was rescinded and another Notification 25/2004, dated 10 -9 -2004 was issued exempting the services under the category of Business Auxiliary Services. However, Commission Agent service was not one of the specified services but the appellant continued to avail the benefit and did not pay any service tax.

(3.) THE challenge in the present appeal is only to the penalties. It is the contention of the Ld. Advocate that the notice having been issued on 26 -2 -2007 for the period 9 -7 -2004 to 18 -10 -2004, is barred by limitation, inasmuch as the non -payment of tax was on account of bona fide mis -interpretation of various notifications. The Law was not clear and which led to the factum of nonpayment of dues. There is no mala fide on their part and no evidence has been brought on record by the revenue. In this scenario, imposition of penalties upon them is not justified and the benefit of provisions of Section 80 of the Finance Act, 1994 should be extended to them.