Assessee gets immunity from penalty as he had no mala fide intention in not depositing service-tax in time

Section 80, read with sections 76 and 77 of the Finance Act, 1994 - Penalty - Not to be imposed in certain cases - Assessee, an individual cab owner, provided services but did not pay service tax - Department levied service tax with interest and penalty - Commissioner (Appeals) recorded a finding that there was no mala fide intention in not depositing service tax in time and assessee was ignorant about provisions of service tax and, therefore, penalty could not be levied - Revenue argued that ignorance of law cannot be excuse - Tribunal upheld waiver of penalty holding that revenue did not dispute that there was no mala fide intent on part of assessee - HELD : In view of finding of fact that there was no mala fide intent of assessee in not depositing tax in time, no substantial question of law arose - Hence, appeal was dismissed [Paras 5 & 6] [In favour of assessee]

Refer:[2014] 45 taxmann.com 218 (Allahabad)

HIGH COURT OF ALLAHABAD

Commissioner of Central Excise
v.
Muniruddin