2009 (1) TMI 68 - AT - Service Tax

Appellant rented vehicle to M/s. BSNL for its staff to commute between residences and office suppression of fact of rendering taxable services - failure to fulfill the statutory obligations had occurred owing to his ignorance - M/s. BSNL also had not advised of the service tax liability nor paid the tax moreover, SCN had not alleged willful misstatement or suppression of facts and had not invoked larger period u/s 73 hence demand and penalty are not sustainable

Summary

In the case of Appellate Tribunal CESTAT, CHENNAI, the appellant, Shri R. Deivendran, rendered taxable service to M/s. BSNL under a "rent a cab scheme operator" agreement. The appellant failed to comply with statutory obligations such as registering as a service provider, paying taxes, and filing returns. The original authority issued a show-cause notice confirming a demand of Rs.9,080 for service tax, along with penalties. The appellant appealed, claiming ignorance of legal provisions and non-willful suppression of facts. The Commissioner (Appeals) upheld the original authority's decision, prompting an appeal to the Tribunal. The Tribunal found that the appellant, an illiterate person, did not willfully suppress facts and that the penalties were not sustainable. The impugned order was set aside, and the appeal was allowed. The Tribunal noted that the show-cause notice did not allege willful suppression of facts or invoke a larger period under the Act. The appellant's claim of ignorance and the alternative plea regarding taxable value were considered in the judgment. The Tribunal ultimately ruled in favor of the appellant, overturning the penalties and tax demand. The judgment was dictated and pronounced in open court.