2010 (4) TMI 179 - AT - Service Tax

Goods Transport Service- Time Barred- The appellants herein challenge the imposition of penalty of Rs.2,01,873/- imposed under the provisions of Section 78 and penalty of Rs. 200/- per day imposed under Section 76, on the ground that the demand of service tax, although paid together with interest, is barred by limitation. Held that- the department has not established that there was any suppression on their part so as to invoke the extended period of limitation against them for confirmation of the demand. Therefore, accept the contention of the assessees that they are not liable to penalty and accordingly set aside the penalty and allow the appeal.

Summary

The Appellate Tribunal CESTAT, Chennai ruled in favor of the appellants, setting aside penalties imposed under Sections 78 and 76 of the Finance Act, 1994. The tribunal accepted the appellants' argument that they were not liable for penalties as the department failed to prove suppression on their part regarding service tax payment on Goods Transport Service.