2010 (7) TMI 604 - AT - Service Tax

Penalty - Suppression of facts - Non-inclusion of electricity charges collected by the assessee s customers and non-inclusion of the cost of cooking gas and firewood supplied to customers should be treated as suppression of facts with the intention to evade payment of service tax - However, mere non-inclusion is not sufficient to hold that the assessees had suppressed such non-inclusion - Revenue is required to shown that the assessees had knowledge that they were required to include the above elements and still did not do so - Held that section 78 penalty is not attracted and accordingly set aside the same and allow the appeal in favour of assessee.

Summary

The appeal challenged the penalty under Section 78 of the Finance Act, 1994. The tribunal ruled in favor of the assessee, stating that mere non-inclusion of certain charges is not enough to prove intention to evade payment of duty. The penalty was set aside, and the appeal was allowed.