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Issues: Failure to pay service tax and file return, imposition of penalty under section 76 of the Finance Act, enhancement of penalty amount under section 84 of the Finance Act, applicability of Amnesty Scheme, reliance on previous cases.
In this judgment by the Appellate Tribunal CESTAT MUMBAI, the issue revolved around the failure of the assessee to pay service tax and file returns for the period between April 1999 to March 2003 within the stipulated period. The Assistant Commissioner issued a show cause notice, confirmed the service tax and interest amount, and imposed penalties under section 76 of the Finance Act. The Commissioner, under section 84 of the Finance Act, enhanced the penalty amount significantly. The appellant contended that they paid the service tax from their own funds and had no deliberate intention to delay payment, believing they were not covered by the service tax network. They also argued that the Finance Ministry's Amnesty Scheme allowed for payment with interest to avail exemption from penalties. The appellant cited various cases in support of their argument. The Tribunal, after considering the appellant's contentions, the payments made before and after the show cause notice, and the Amnesty Scheme, set aside the Commissioner's order and allowed the appeal. The Tribunal emphasized the importance of applying the Amnesty Scheme to cases predating its introduction, as established in previous decisions. The judgment provided consequential relief to the appellants, overturning the enhanced penalty amount imposed by the Commissioner. The reliance on previous cases and the application of the Amnesty Scheme played a crucial role in the Tribunal's decision to provide relief to the appellants in this case.
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