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TMI Blog2015 (11) TMI 1184X X X X Extracts X X X X X X X X Extracts X X X X ..... ed upon the statement of an uneducated person, who is not aware of the provisions of law and does not understand the impact of the statements he had given. In such circumstances, I hold that the clubbing of service provided by Balaji Construction (Prop. Balraj Malayyapa Besta) is vitiated and the same is set aside. The next ground urged is that threshold exemption have not been allowed to the appellant, as the appellant is a small contractor. So far this issue is concerned the matter is remanded back to the adjudicating authority to examine the allowability of the threshold limit as provided under the relevant notification and allow the same. So far the penalties are concerned, I find that there is reasonable cause for not making compli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tice. A show-cause notice dated 21.04.2010 was issued alleging that the appellant have been providing services chargeable to service tax, such services are provided to Roha Dye Chem. Pvt. Ltd. and hence the appellant is not eligible for abatement. Accordingly the appellant is required to show-cause as to why service tax be not demanded by classifying under the categories Commercial or Industrial Construction Service and site formation and clearance, excavation and earth moving demolition and accordingly service tax was proposed to be demanded at ₹ 15,12,098/- for the period October, 2004 to September, 2009 (extended period) with a further proposal to appropriate the amount of ₹ 11,52,000/- already deposited and further deman ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rate default or contumacious conduct, as the appellant is not educated and was not aware of the provisions of service tax. Further urged that the show-cause notice is barred by limitation and accordingly prays for appropriate relief. The learned Commissioner (Appeals), went through copies of income tax records filed before him for the assessment years 2005-06 and 2006-07, but rejected the same holding, having no evidentiary value. Further relying on the statement of the proprietor of appellant concern Mr. Malayyapa Basappa, recorded under Section 14, he had stated that they had started civil construction business in the name of Balaji Construction as the proprietor in the year 2004 and the name of his firm has changed to Shri Dhavir Constru ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l contractor. So far this issue is concerned the matter is remanded back to the adjudicating authority to examine the allowability of the threshold limit as provided under the relevant notification and allow the same. So far the penalties are concerned, I find that there is reasonable cause for not making compliance with the provisions of the Act and the Rules. The contention of the appellant have not been found wrong that he was not aware being uneducated and engaged in labourer oriented job. Accordingly, I set aside the penalty imposed under Section 77 and 78 of the Finance Act. The penalty under Section 76 have already been set aside by the learned Commissioner (Appeals). Thus with these observations the appeal is allowed in part and rem ..... X X X X Extracts X X X X X X X X Extracts X X X X
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