2007 (4) TMI 715 - AT - Service Tax

Summary

Issues involved: Registration u/s 30-11-2004, liability to service tax, waiver of penalty.

Registration and liability to service tax: The appellant was registered before 30-11-2004 and found liable for service tax on services rendered. The Ld. Commissioner (Appeal) acknowledged the appellant's proactive approach in seeking registration before the deadline and voluntarily depositing the taxes and interest demanded. The Tribunal emphasized that penalty for breach of law should not be imposed in such circumstances, citing precedents like Hindusthan Steel Ltd. v. State of Orissa and E.I.D. Parry (I) Ltd. v. Commissioner. Therefore, no penalty was deemed applicable on the appellant.

Verification of deposits: The Tribunal directed verification of any deposits made by the appellant towards interest and service tax, with instructions to recover any shortfalls and refund any excess amounts. The impugned order by the Ld. Commissioner (Appeal) was modified accordingly, and the appeal was allowed partly.