2010 (7) TMI 316 - AT - Service Tax

Scientific and technical consultancy service - Penalties have been imposed under Section 76 and Section 77 of Finance Act 1994 on the ground that there was delay in filing the service tax return as well as in payment of service tax - C.A. appearing on behalf of the appellant submitted that the appellant was a textile engineer and not at all conversant with the law - As soon as he came to know that he was liable to pay service tax for rendering the services he promptly obtained the registration and paid the service tax before the show cause notice was issued - Held that - case is squarely covered by the provisions of Section 73(3) which provides that if the assessee pays the service tax with interest further proceedings need not be initiated by issue of show cause notice - Appeal is allowed

Summary

The Appellate Tribunal CESTAT, Ahmedabad allowed the appeal of an individual providing scientific and technical consultancy service, setting aside penalties imposed under Section 76 and Section 77 of Finance Act, 1994 for delay in filing service tax return and payment. The appellant promptly paid the service tax with interest before the show cause notice was issued, invoking Section 73(3) of the Act.