No Sections 77 & 78 Penalties if No Intent to Evade Service Tax Payment

Passi Construction Vs CCE & ST- Ludhiana (CESTAT Chandigarh) In a recent ruling by the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) Chandigarh, in the case of Passi Construction versus the Commissioner of Central Excise, Ludhiana, it has been held that penalties under Sections 77 and 78 of the Finance Act, 1994 will not be applicable if there is no intent to evade payment of service tax. Background: The appellant, Passi Construction, was engaged in providing services related to building and civil structures falling under the category of “Commercial or Industrial Const...