TaxTMI 
TaxTMI 
2024 (3) TMI 799
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.... 2.1 The issue is in a very narrow compass. The appellant is one of the partners in a partnership firm M/s Health Sanctuary, Noida. Additional Commissioner while confirming the demand of Rs.55,01,364/- against the partnership firm has imposed penalty on the appellant:- "xi. I also made responsible Ms. Shubhi Kamal, C-1/529, Palam Vihar, Gurgaon, Haryana-122017/J5-1, DLF Phase-2, Gurgaon-122001; Ms. Priya Chhatwal, C-7, Green Park Extension, New Delhi-110016, partners of M/s Health Sanctuary, Noida (a partnership firm) jointly and severally for payment of aforesaid adjudged dues and I also impose personal penalty amounting to Rs. 5,00,000/- on each of Ms. Shubhi Kamal, Ms. Priya Chhatwal and Mr. Dev Sharma, in terms of Section 78A of Finance Act, 1994." 2.2 Appellant had filed an appeal before the Commissioner (Appeals) Central goods and Service Tax, Noida, who reduced the penalty to Rs.1,00,000/- taking note of Section 78A of the Act. 3.1 I have considered the impugned order along with the submissions made in appeal and during the course of argument by the learned authorized representative. 3.2 In the impugned order following observations have been made for impo....
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....cee) have signed an Indemnity bond on 14.12.2017, by which New Spice had been indemnified of liability of Service tax. I find that the said bond was made in December 2017 i.e. after issuance of instant Show Cause Notice on 14.11.2017, wherein the proposal of personal penalty on the appellant after investigation was already done by the department. Therefore the indemnity bond is also another attempt to escape the responsibility which came to the knowledge of the appellant once SCN was issued to her." From the perusal of the above para the Commissioner (Appeals) has held that the appellant was one of the partner of the main notice. 3.3 Original authority has observed as follows: "Further Ms. Shubhi Kamal, C-1/529, Palam Vihar, Gurgaon, Haryana-122017/ J5-1, DLF Phase-2, Gurgaon-122001; Ms. Priya Chhatwal, C-7, Green Park Extension, New Delhi-1100 16 (Both partners of M/s Health Sanctuary, Noida (a partnership firm) gs per the ITR-5 of the financial year 20 13-14 (A.Y. 20 14-15) and Mr. Dev Sharma Authorized Signatory of M/s. Health Sanctuary Noida, H.No. 33, Khasra No. 99, Dabri Village, New Delhi-110045 are responsible, for such short payment and evasion of Service Ta....
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....uty without actual receipt of taxable service or excisable goods either fully or partially in violation of the rules made under the provisions of this Chapter; or (d) failure to pay any amount collected as service tax to the credit of the Central Government beyond a period of six months from the date on which such payment becomes due, then any director, manager, secretary or other officer of such company, who at the time of such contravention was in charge of, and was responsible to, the company for the conduct of business of such company and was knowingly concerned with such contravention, shall be liable to a penalty which may extend to one lakh rupees. "Explanation--For the removal of doubts, it is hereby clarified that where any service tax has not been levied or paid or has been short-levied or short-paid or erroneously refunded, and the proceedings with respect to a notice issued under sub-section (1) of section 73 or the proviso to sub-section (1) of section 73 is concluded in accordance with the provisions of clause (i) of the first proviso to section 76 or clause (i) of the second proviso to section 78, as the case may be, the proceedings pending....
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....tion. I observe that there are ample medial documents on the record of this appeal. Perusal whereof reveals that the spouse of the appellant was diagnosed a brain lesion way back in the year 2005 when he was for the first time operated. The surgical interventions were repeated as it was again in 2008, 2014 and lately in 2017 thereafter he even went into Coma and finally passed away. This situation definitely was one of the gravest situations for the present appellant to actually to not be fully aware about the day-to-day affairs of the Company. There is sufficient admission of Amar Sigh Gautam that he was looking after the financial affairs of the Company. The financial statements in the form of balance-sheets, tax returns etc. as placed on record bear his signature as the person authorized for the Company. None of those documents bear the signature of the appellant. Department has not produced any such documents for a subsequent period where the appellant would have been a signatory to such returns. Mere oral submission of Mr. Amar Singh Gautam that he was acting under the guidance of the appellant cannot be fully sufficient for holding at least that the appellant had the knowledg....