2009 (10) TMI 227

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..... t the imposition of penalty of Rs. 1,000 under section 37 and Rs. 2,39,759 under section 78 of the Finance Act, 1994 vide revised order passed by the Commissioner under section 84 of the Finance Act, 1994. The learned Advocate on behalf of the appellant submits that the service tax was levied on manpower recruitment and supply agency service on 16-6-2005. He submits that the appellant is an indivi .....

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..... ot sustainable. 2. Learned SDR on behalf of the revenue reiterates the finding of the Commissioner (Appeals). He submits that the demand of tax is for the extended period and, therefore, the imposition of penalty under section 78 of the Act is warranted. He cited the case-law referred in the grounds of appeal. He also submits that Central Excise Officers detected non-payment of tax and suppressio .....

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..... providing taxable service in the instant case is not a very educated person. He is merely a literate person just able to read and write. He appeared not competent to understand the provisions of statute and cannot decide himself what is payable and what is not taxable or payable unless told by somebody. Despite this what is appreciable here is that he paid the entire tax liability as soon as he c .....

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..... learned SDR is that the demand has been confirmed by invoking the extended period of limitation meaning thereby the non-payment of tax with intent to evade payment of duty. I am unable to accept the contention of the learned SDR. It is seen that levy of manpower recruitment and supply agency was introduced on 16-6-2005. The appellant is an individual person and supplied manpower to the limited com .....

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..... ression of facts with intent to evade payment of duty. In any event, the levy was introduced on 16-6-2005 and the delay of payment of tax was not delivered and, therefore, the original authority rightly invoked the section 80 of the Act. 5. In view of the above discussion, the impugned order of the Commissioner (Appeals) is set aside. The order of the Deputy Commissioner is restored. The appeal fi .....

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