By TIOL News Service

MUMBAI, MAR 11, 2016: THE appellant is the President and Group CEO of the company against whom service tax liability has been confirmed.

The appellant is before the CESTAT against personal penalty imposed by the adjudicating authority under the provisions of Section 78A of the Finance Act, 1994.

It is submitted that the provisions of Section 78A of the FA, 1994 [Penalty for offences by director, etc., of company] were brought into statute by the Finance Act, 2013 with effect from 10.05.2013 and cannot be invoked for the aberrations of the assessee Company for the earlier period for which tax liability has been confirmed.

The Bench observed that section 78A was inserted in the Finance Act, 1994 by the Finance Act, 2013 w.e.f 10.05.2013 and, therefore, could not have been invoked by the Revenue for any aberrations by the assessee prior to 10.05.2013.

Holding that there is merit in the submission made by the appellant, the impugned order, to the extent it imposes personal penalty under Section 78A of the Finance Act, 1994, was set aside and the appeal to that extent was allowed.

(See 2016-TIOL-559-CESTAT-MUM )