Case Law Details

Case Name : RSWM Ltd. Vs Commissioner of Central Excise, Jaipur (CESTAT Delhi)
Appeal Number : Appeal No. ST/3758 & 3761 OF 2012
Date of Judgement/Order : 14/12/2012
Related Assessment Year :
Courts : All CESTAT (758) CESTAT Delhi (267)




Commissioner of Central Excise, Jaipur

FINAL ORDER NOS. 55159-55160 OF 2013

STAY ORDER NOS. 55128-55129 OF 2013

APPLICATION NO. ST/STAY NOS. 4750 & 4753 OF 2012

APPEAL NOS. ST/3758 & 3761 OF 2012



D.N. Panda, Judicial Member – Although the matter has been listed for stay hearing, it was earnest prayer of the appellant to dispose the appeal waiving penalties since law in confusion has been resolved by the Apex Court in the case of UOI v. Indian National Ship Owners Association  [2010] 24 STT 366 (SC) holding that the assessees were not able to assess service tax liability before the notified date to levy service tax on reverse charge mechanism in respect of services provided from abroad. The judgment in that case was delivered by the Hon’ble High Court of Bombay on 11-12-2008 and affirmed by Apex Court on 14-12-2009. The confusion status of law no more remained in uncertainty. The appellant brings out that since the liability is determinable after 18-2-2006, it has discharged tax liability with interest in respect of both the appeals although it sought registration after the impugned period. It was given to understand that the period covered in both the appeals are prior to the delivery of the judgment of Apex Court in the aforesaid citation.

2. Considering the totality of the situation and considering that when law is not settled and confusion persisted, extended period is not invokable except deliberate case of fraud and prejudice caused to Revenue, the situation of the former nature is a reasonable cause for waiver of penalty.

3. Above reason enables us to allow both the appeals partly including the stay application confirming the tax and interest as well as penalty under section 77 in both the cases. Penalties imposed under section 78 of the Act are waived. We order accordingly.

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Category : Service Tax (3403)
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