KRUNAL CATERING SERVICE Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) AFTER dispensing with the condition of pre -deposit of penalty imposed upon Section 78 of the Finance Act, 1994, I proceed to decide the appeal itself, with the consent of both the sides.

(2.) THE appellants are running a canteen in a factory situated in the rural area of Gujarat and providing services of meals etc. to the employees of the factory. Such running of canteen came under service tax net with effect from 10 -9 -2004 under the category of service "outdoor catering service". The appellant was required to be registered with the department and to discharge his tax liabilities accordingly.

(3.) CHALLENGE in the present appeal is only to penalty of identical amount imposed under Section 78 of the Finance Act. Learned advocate Shri Dixit appearing for the appellant submits that there was a genuine belief on part of the appellant that they, being a canteen and not a catering service, they would not get covered under the said service. As such he submits that in terms of provision of Section 80 of the Act, no penalty should be imposed upon them.