2009 (4) TMI 375 - AT - Service Tax

Penalty- The respondent is not educated. He was basically a driver and has rendered the services of rent-a-cab to multi-national company and the service tax demand for two years confirmed against him is only Rs. 58,611 and the same stands paid with interest. Commissioner (Appeals) taking the above circumstances into account invoked the provision of section 80 and set aside the penalty imposed on him. Held that- The grounds and circumstances based on which the Commissioner (Appeals) invoked the leniency provided for under section 80 of the Finance Act, appears reasonable and calls for no interference. The appeal by the Department is rejected.

Summary

The Department appealed against a penalty imposed on a driver for failure to pay service tax. The Commissioner (Appeals) set aside the penalty under section 80 of the Finance Act, 1994, considering the driver's lack of education and ignorance of the law. The appeal by the Department was rejected by the Appellate Tribunal CESTAT, New Delhi.