2010 (6) TMI 429 - AT - Service Tax

Penalty - provisions of sections 76, 77 and 78 of the Finance Act, 1994 - contention of the assessees that they were under a bona fide belief that the commission paid by them to foreign agents being related to exports, would not attract service tax, they were ignorant of their liability to tax is not rebutted as the revenue has not established suppression on their part - protection under section 80 of the Finance Act, 1994 as the assessees had a reasonable cause for the failure to pay tax within time Appeal allowed

Summary

The Appellate Tribunal CESTAT, Chennai heard an appeal challenging penalties imposed on assessees under sections 76, 77, and 78 of the Finance Act, 1994. The tribunal accepted that the assessees had a bona fide belief that certain payments would not attract service tax, and set aside penalties under sections 76 and 78 but upheld the penalty under section 77. The appeal was partly allowed.