HIGH COURT OF JUDICATURE AT HYDERABAD
FOR THE STATE OF TELANGANA AND THE STATE OF ANDHRA PRADESH
PRESENT THE HON’BLE THE CHIEF JUSTICE SRI KALYAN JYOTI SENGUPTA AND THE HON’BLE SRI JUSTICE SANJAY KUMAR C.E.A. NO.66 OF 2014 DATED:10.6.2014 Between:
The Commissioner of Customs, Central Excise & Service Tax Guntur … Appellant And M/s. The Guntur Municipal Corporation Guntur … Respondent THE HON’BLE THE CHIEF JUSTICE SRI KALYAN JYOTI SENGUPTA AND THE HON’BLE SRI JUSTICE SANJAY KUMAR C.E.A. NO.66 OF 2014 JUDGMENT: (per the Hon’ble the Chief Justice Sri Kalyan Jyoti Sengupta) We have heard the learned counsel for the appellant - Revenue and gone through the impugned judgment and order of the learned Tribunal.
We are of the view that in this matter no substantial question of law is involved warranting admission of the appeal as the learned Tribunal found on fact that there has been sufficient and reasonable cause for not imposing penalty under Section 80 of the Finance Act, 1994, which reads as under:
“80. Penalty not to be imposed in certain cases.- Notwithstanding anything contained in the provisions of section 76, section 77, section 78 or section 79, no penalty shall be imposable on the assessee for any failure referred to in the said provisions if the assessee proves that there was reasonable cause for the said failure.”
The learned Tribunal found that the State of Andhra Pradesh was trying to get exemption from payment of service tax from the respondent - Municipal Corporation and because of the said effort there was delay in paying the service tax. According to us, the Municipal Corporation cannot discharge above liabilities unless the State Government helps, and the State Government itself was not providing fund. Therefore, it cannot be said that the Municipal Corporation is responsible for the delay in payment of the tax.
Accordingly, we dismiss the appeal. There will be no order as to costs.
K.J. SENGUPTA, CJ SANJAY KUMAR, J 10.6.2014 bnr