2006 (10) TMI 399 - AT - Service Tax

Summary

Issues Involved:
Imposition of penalty under section 76 and section 77 for service tax delay and late filing of returns.

Analysis:
The appellants in this case had paid the service tax along with interest, which was not challenged, leading to its confirmation. The main contention was the imposition of penalties amounting to Rs. 84,950 under section 76 and Rs. 1,000 under section 77. The adjudicating authority calculated a total service tax payable of Rs. 1,01,013 with a delay of 1630 days in payment, but penalty was imposed only for 849 days at Rs. 100 per day, the minimum penalty under section 76 of the Finance Act, 1994. The Commissioner (Appeals) upheld this penalty, finding the appellants' reasons insufficient under section 80. The Judicial Member, Krishna Kumar, saw no grounds to interfere with the lower authorities' decision. Regarding the penalty of Rs. 1,000 under section 77 for late filing of service tax returns, it was considered the minimum and not questionable. The combined penalties were less than the service tax amount, leading to the dismissal of the appeal.

In summary, the judgment focused on the confirmation of service tax payment, the calculation and imposition of penalties under sections 76 and 77, the minimum penalty amounts, the adjudicating authority's decision upheld by the Commissioner (Appeals), and the insufficiency of reasons provided by the appellants. The Judicial Member found no justification to overturn the lower authorities' orders, ultimately resulting in the dismissal of the appellants' appeal.