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Govt scraps ban on export of onionFormer Delhi Congress chief Arvinder Singh Lovely joins BJP with three moreUS Nurse convicted of killing 17 patients - 700 yrs of jail-term awardedGST - Payment of pre-deposit through Form GST DRC-03 instead of the prescribed Form APL-01 - Petitioner attributes it to technical glitches - Respondent is the proper authority to decide the question of fact: HC2nd Session of India-Nigeria Joint Trade Committee held in AbujaGST - Since SCN is bereft of any details and suffers from infirmities that go to the root of the cause, SCN is quashed and set aside: HC1717 candidates to contest elections in phase 4 of Lok Sabha ElectionsGST - Once Appellate Authority comes to the conclusion that SCN was issued by an officer who was not competent; reply was also considered by an incompetent authority and the Competent Authority had not applied its independent mind, Appellate Authority could not have assumed original jurisdiction and proceeded further with the matter: HC7th India-Indonesia Joint Defence Cooperation Committee meeting held in New DelhiGST - Neither the Show Cause Notice nor the order spell out the reasons for retrospective cancellation of registration, therefore, the same cannot be sustained: HCMining sector registers record production in FY 2023-24GST - If the proper officer was of the view that the reply is unclear and unsatisfactory, he could have sought further details by providing such opportunity - Having failed to do so, order cannot be sustained - Matter remanded: HCAnother quake of 6.0 magnitude rocks Philippines; No damage reported so farI-T - Initial burden of proof rested on assessee to substantiate his claim of having incurred expenditure on improvement of property: ITATTrade ban: Israel hits back against Turkey with counter-measuresI-T - Agricultural income can be treated by ITO as undisclosed income in absence of any substantial / corroborative material to prove same: ITATCanada arrests three persons in alleged killing of Sikh separatistI-T - Income from sale of property has to be classified & characterised only in manner of computation as per section 45(2): ITATCus - When there is nothing on record to show that appellant had connived with other three persons to import AA batteries under the guise of declaring goods as Calcium Carbonate, penalty imposed on appellant are set aside: HCCongress fields Rahul Gandhi from Rae Bareli and Kishori Lal Sharma from AmethiGST -Since both the SCNs and orders pertain to same tax period raising identical demand by two different officers of same jurisdiction, proceedings on SCNs are clubbed and shall be re-adjudicated by one proper officer: HCFormer Jharkhand HC Chief Justice, Justice Sanjaya Kumar Mishra appointed as President of GST TribunalSale of building constructed on leasehold land - GST implicationI-T - Interest received u/s 28 of Land Acquisition Act 1894 awarded by Court is capital receipt being integral part of enhanced compensation and is exempt u/s 10(37): ITATGirl students advised by Pak college to keep away from political events
 
ST - Consultant pocketing money meant for tax - FIR proceedings against Consultant shows that it is not appellant who has committed offence, therefore, there is reasonable cause for waiver of penalty: CESTAT

By TIOL News Service

MUMBAI, AUG 10, 2015: REVENUE is before the CESTAT against the order-in-appeal wherein the Commissioner (Appeals) dropped the penalty imposed u/s 78 and reduced the penalty imposed u/s 77 from 20,000/- to Rs.500/-.

The AR submitted that the respondent had charged and recovered service tax from M/s. Cadbury India Ltd but have not deposited the same and, therefore, reduction in penalties was not justified.

The respondent submitted that they had no malafide intention to evade service tax. Inasmuch as they had been paying amount in cash to the Consultant for depositing the same towards their ST liability but he committed a fraud in the sense that he pocketed the money instead of depositing it with the exchequer. Further, in view of the fraud committed by the consultant, department had also initiated the criminal proceedings and filed FIR with the police and all this goes to show that they did not have any malafide or intention to evade service tax. And, therefore, the Commissioner(A) had rightly invoked s.80 and reduced the penalties imposed.

The Bench after extracting the findings of the Commissioner (A) observed -

"…it can be seen that the same is discussed in details that regarding the fraud committed by the consultant with the appellant for not depositing service tax in the government's account for which FIR proceedings also initiated against consultant by the department, which clearly shows that it is not the appellant who has committed an offence of non payment of service tax, it is the consultant, who has defrauded them therefore there is reasonable cause for waiver of penalty under Section78. Accordingly Ld. Commissioner (Appeals) has correctly set aside the penalty imposed under Section 78. As regard the reduction of penalty under Section 77 from Rs. 20,000/- to Rs. 500/-. On the same fact Ld. Commissioner (Appeals) has exercised his discretion in reducing penalty from Rs. 20,000/- to Rs. 500/-….;"

Holding that there is no reason to interfere with the findings of the Commissioner (Appeals) who has reduced penalty by proper application of mind, the same was upheld and the Revenue appeal was dismissed.

In passing: Also see DDT 2574 & 2015-TIOL-1586-CESTAT-MUM & 2015-TIOL-1587-CESTAT-MUM .

(See 2015-TIOL-1650-CESTAT-MUM)


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