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2015 (11) TMI 1184 - AT - Service TaxSmall service provider exemption upto 10 lakhs - clubbing of clearance - another proprietorship firm run by the son of the assessee - work of civil construction and site formation service - appellant had neither registered with the Service Tax Department nor was paying tax nor had charged service tax in its invoices - Held that:- Clubbing of the service provided by Balaji Construction is evidently wrong. The appellant had produced the copy of Income Tax records of the proprietor of “Balaji Construction” along with the PAN number. But without making further inquiry the same was rejected. Further the Revenue has relied upon the statement of an uneducated person, who is not aware of the provisions of law and does not understand the impact of the statements he had given. In such circumstances, I hold that the clubbing of service provided by Balaji Construction (Prop. Balraj Malayyapa Besta) is vitiated and the same is set aside. The next ground urged is that threshold exemption have not been allowed to the appellant, as the appellant is a small contractor. So far this issue is concerned the matter is remanded back to the adjudicating authority to examine the allowability of the threshold limit as provided under the relevant notification and allow the same. So far the penalties are concerned, I find that there is reasonable cause for not making compliance with the provisions of the Act and the Rules. The contention of the appellant have not been found wrong that he was not aware being uneducated and engaged in labourer oriented job. Accordingly, I set aside the penalty imposed under Section 77 and 78 of the Finance Act. - Decided partly in favour of assessee.
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