Question of Evasion doesn't arise when there is no Liability of Payment of Service Tax: CESTAT [Read Order]
Question of evasion doesn't arise when there is no liability of payment of service tax, rules CESTAT
![Question of Evasion doesnt arise when there is no Liability of Payment of Service Tax: CESTAT [Read Order]](https://www.taxscan.in/wp-content/uploads/2024/01/Payment-of-Service-Tax-Service-Tax-CESTAT-Liability-of-Payment-Liability-TAXSCAN.jpg "Question of Evasion doesnt arise when there is no Liability of Payment of Service Tax: CESTAT [Read Order]")
The New Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) ruled that the question of evasion doesn't arise when there is no liability of payment of service tax. The appellant in the present case is engaged in manufacture of dustless chalk, pencil crayons etc. Appellant are also engaged in manufacturing of machines used in coal mining. The appellant is also...
The New Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) ruled that the question of evasion doesn't arise when there is no liability of payment of service tax.
The appellant in the present case is engaged in manufacture of dustless chalk, pencil crayons etc. Appellant are also engaged in manufacturing of machines used in coal mining. The appellant is also holding service tax registration for providing taxable services and are also availing the benefit of Cenvat credit on inputs, input services and capital goods under the Cenvat Credit Rules, 2004 (CCR,2004).
Vide show cause notice dated 18.02.2020, the service tax amounting to Rs.4,43,663/- on the amount of Rs.29,57,753/- was proposed to be recovered along with interest and appropriate penalty. The proposal was confirmed initially vide Order-in-Original No.08/ST dated 31.03.2021, the appeal against the said order has been rejected by the Commissioner (Appeals). Being aggrieved, the appellant is before the Tribunal.
The counsel for the petitioner contended that no question for imposition of penalty at all arises for want of any malafide intent on the part of the appellant to evade its tax liability.
A Single Bench of Dr Rachna Gupta, Judicial Member observed that “It is held that the admitted facts on record and the findings above are sufficient to hold that there is no liability of payment any service tax on the part of the appellant, the question of evasion, thereof, does not at all arises. Penalty is, therefore, not imposable upon the appellant. The presence of any malafide intent to evade becomes irrelevant in the given scenario. Thus, I hold that there is neither any legal basis nor factual with the adjudicating authorities to penalize the appellant. Resultantly, the order imposing penalty is also held liable to be set aside.”
To Read the full text of the Order CLICK HERE
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