IN THE CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL
SOUTH ZONAL BENCH, CHENNAI
(Arising out of Order-in-Appeal No. 122/2007 dated 10.10.2007 passed by the Commissioner of Service Tax, Chennai)
M/s. East Coast Construction & Industries Ltd.
Commissioner of Service Tax, Chennai
Shri Vikram Ramakrishnan, Advocate for the Appellant
Shri K.P. Muralidharan, AC (AR) for the Respondent
Honble Shri D.N. Panda, Judicial Member
Honble Shri Madhu Mohan Damodhar, Technical Member
Date of Hearing / Decision: 10.03.2017
FINAL ORDER No. 40433 / 2017
Per D.N. Panda
Appellant does not dispute the tax liability. It has also paid interest.
2. The prayer of the appellant is that due to financial difficulties it could not discharge the tax liability for which there is a penalty imposed under section 76 of the Finance Act, 1994. Appellant therefore prays that the Tribunal may consider this case under section 80 of the Finance Act, 1994 to exonerate from penalty, since tax liability has been discharged.
2. Revenue does not dispute discharge of tax liability.
3. Heard both sides and perused the records.
4. Considering that at the initial stage of implementation of the tax law, there was a serious confusion as to the taxability and the taxing entry under which tax shall be imposed till resolution of the dispute in the case of Larsen & Toubro Ltd. Vs. State of Karnataka reported in 2014 (34) STR 481 (SC).
5. In view of the above, there shall be no penalty on the appellant under section 76 of the Finance Act, 1994.
6. In the result, appeal is partly allowed to this extent.
(Dictated and pronounced in open court)
(Madhu Mohan Damodhar) (D.N. Panda)
Technical Member Judicial Member