2010 (7) TMI 293 - AT - Service Tax

Penalty - Assesses initially paid service tax - by debit in their CENVAT account - objected to by the authorities on the ground that payment can be made only in cash - Subsequently, assessees made the service tax payment in cash - penalty under Section 76 is not attracted against them for the reason that due to payment subsequently of the service tax in cash, it cannot be said that there was any failure to pay tax so as to warrant applicability of Section 76 - set aside penalty under Section 76 and partly allow the appeal

Summary

The Appellate Tribunal CESTAT, Chennai ruled that penalty under Section 76 was not applicable as the assessees paid the service tax in cash after initially debiting their CENVAT account. Penalty under Section 77 was upheld. (2010 (7) TMI 293 - CESTAT, CHENNAI)