2009 (10) TMI 222 - AT - Service Tax

Penalty- The appellant is an individual (proprietor of a proprietary concern) who undertakes loading and unloading of cargo for others; the service tax demand has been honoured. In the light of the decision of Jagdeep Singh Saleya v. CCE, Held that- When the activity of the appellant itself does not attract service tax, the question of imposition of penalty certainly does not arise, even though the service tax demand has not been challenged by the assessee. , therefore, set aside the penalties and allow the appeal.

Summary

The Appellate Tribunal CESTAT, Chennai ruled in favor of the appellant, an individual proprietor, in a case challenging penalties imposed under sections 76, 77, and 78 of the Finance Act, 1994. The appellant's activity of loading and unloading cargo for others did not attract service tax, as per a Tribunal decision and a CBEC Circular. Therefore, the penalties were set aside, and the appeal was allowed.