VIPUL TRAVELS Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) THIS is an appeal against the order confirming the demand of service tax of Rs. 48,745 with interest as applicable for the period 4 -12 -2002 to 19 -12 -2003. Penalty equal to service tax demanded has also been imposed under Section 78 of Finance Act, 1944.

(2.) THE appellants have prayed for condonation of delay, that has occurred on the ground that they had filed a declaration under Service Tax Dispute Resolution Scheme, 2008 with the designated authority, which has been rejected on 30 -9 -2008, on the ground that the service tax amount involved is more than Rs. 25,000 and therefore, the claim is not applicable. Treating the above ground as sufficient for the purpose of condonation of delay, the delay in filing is condoned.

(3.) THE appellants have clearly stated that they are contesting only penalty and not the service tax liability on a rent -a -cab and the interest leviable on it. It is noted that both the authorities at lower level have observed that lenient view cannot be taken under Section 80 of Finance Act, 1994 in view of the fact that appellant was maintaining the accounts in pencil so that manipulation of data is easily possible. Further, in the impugned order, it has also been observed that the claim of the appellant that they were under a bona fide belief that only persons who are registered under Motor Vehicles Act are required to make entries and pay the service tax, is not believable and acceptable.