2007 (3) TMI 776 - AT - Service Tax

Summary

Issues involved: Waiver of penalty u/s 77 for failure to file ST3 Returns.

Summary:
1. The appellant sought waiver of penalty of Rs. 1,000/- imposed u/s 77 for failure to file ST3 Returns and further penalty of Rs. 200/- for everyday's failure. The Asst. Commissioner dropped the show cause notice based on the appellant's bona fide belief, but the Commissioner imposed penalty upon review.

2. The learned Counsel cited a judgment where the Dy. Commissioner's decision to drop proceedings was upheld, arguing for similar treatment in this case. However, the learned JDR argued that penalty should have been imposed by the Asst. Commissioner in this instance.

3. Upon careful consideration, the Tribunal found the High Court judgment cited by the appellant to be similar to the facts of this case. Consequently, the stay application was allowed, and the matter was scheduled for a final hearing before a Single Member Bench on 23rd March 2007.