M/S. A.S. Rajapann & Others vs Cce, Tirunelveli
- CitationAppeal No. 17/2014
Ratio decidendi
The rule this decision rests on
The penalties under Sections 77 and 78 of the Finance Act, 1994 may be waived under Section 80 where the assessee discharged the service tax liability, together with interest, within the six-month window made available by the Finance Act, 2012 (introducing sub-section (2) to Section 80 with effect from 28.5.2012), where the assessee's conduct shows bona fides, the liability was discharged with interest and remains uncontroverted, and the assessee applied for temporary registration, so that the case falls within the genuine hardship contemplated by Section 80 and the difficulties arising from Section 80(2).
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
(Arising out of Order-in-Appeal No. 17/2014 dated 24.2.2014 and Order-in-Appeal No. 8 & 9/2014 dated 3.2.2014 both passed by the Commissioner of Central Excise (Appeals), Madurai)
M/s. A.S. Rajapann & Others M/s. A.S.R. Sarojini Ammal & Others M/s. A.S.R. Sarojini Ammal & Others Appellants
Vs.
CCE, Tirunelveli Respondent
Appearance
Shri M. Kannan, Advocate, for the Appellant Shri K.P. Muralidharan, AC (AR) for the Respondent
CORAM
Honble Shri D.N. Panda, Judicial Member
Date of Hearing / Decision: 03.03.2015
Final Order No. 40189-40191 / 2015
Learned counsel submits that in all the three appeals, when the liability of the appellant under renting of immovable property arose, the appellant following the mandate of the Finance Act, 2012 discharged its liability within six months of the assent of the President to the Bill. Sub-section (2) was introduced to Section 80 with effect from 28.5.2012. But appellant discharged liability on 28.11.2012. That remains undisputed by both sides.
2. He further submits that the genuine hardship cases are covered for exoneration of penalty under section 80 of the Finance Act, 1994.
3. Conduct of the assessee shows that it has discharged the tax liability with interest which remains uncontroverted and the appellant also sought temporary registration. Department has not yet issued permanent registration.
4. Revenue confirms discharge of liability to the extent of service tax and interest and also the averment of grant of temporary registration to appellant.
5. Considering the difficulties emerging from section 80(2) of the Finance Act, 1994, appellant deserves consideration under section 80 of the Finance Act, 1994. Accordingly, penalties imposed under sections 77 and 78 are waived and appeal allowed as well as stay application disposed. (Dictated and pronounced in open court)
(D.N. Panda) Judicial Member
Rex
2
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