2010 (7) TMI 502 - AT - Service Tax

Demand together with interest and penalty -The Appellants had duly applied for registration soon after the imposition of the tax and they were awaiting the registration before they could made payment of the Service Tax amounts - This is a case in which a lenient view regarding impositionof penalty under section 80 of the Finance Act, 1994 can be taken - Hence, confirming the tax and interest amounts determined by the authorities below, the penalty imposed under section 78 is set aside - Appeal is thus partly allowed.

Summary

The Appellate Tribunal CESTAT, Kolkata partially allowed the appeal regarding the imposition of penalty under section 80 of the Finance Act, 1994. The penalty imposed under section 78 was set aside as the Appellants had applied for Service Tax registration soon after the tax was imposed and had paid the tax and interest amounts subsequently. The appeal was partly allowed, and the stay petition filed by the Appellants was disposed of.