2009 (8) TMI 967 - AT - Service Tax

Summary

Issues involved: Stay application for penalty and interest on service tax payment delay.

The judgment addresses the issue of stay application for penalty and interest on service tax payment delay. The Appellant had paid the service tax amount but sought a stay on the penalty and interest. The Department argued that the entire commission received was taxable under Business Auxiliary Service, and the Appellant had deliberately breached the law by not paying the service tax until investigated by Revenue. The Commissioner found the Appellant liable for suppression of facts and defiance of the law.

The Tribunal considered the findings and directed the Appellant to make a pre-deposit of penalty and interest. The Appellant was instructed to deposit Rs. 20 lakhs as penalty within six weeks and the entire interest amount within one month. The adjudicating authority was tasked with calculating the interest component promptly and communicating the same to the Appellant. The Appellant was required to make the interest deposit within one month of receiving the order. Compliance deadlines were set for the penalty and interest payments.

In conclusion, the stay application was disposed of with the Appellant being directed to make the necessary penalty and interest deposits within the specified timelines to protect the revenue's interests.