Tuesday, June 12, 2012

SECTION 80 r.w.s. 76, 77 & 78 OF FINANCE ACT, 1994:


Merely because revenue detected a case that does not ipso facto invite penal consequence unless ingredients of penalty in respect of each incidence of levy are brought to record.

Assessee was engaged in providing different types of services, when department sought information from him, he took registration and paid Service Tax amount. However, in adjudication, penalties were imposed. Commissioner (Appeal) though upheld other penalties, reduced penalty imposed u/s. 78. The Tribunal held that in absence of questionable conduct on the part of assessee, penalty was to be set aside.

Shobha Lal Solanki V. Commissioner of Central Excise, Jaipur-II – CESTAT, NEW DELHI BENCH.

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