2010 (6) TMI 631 - AT - Service Tax

Penalty u/s 76 -Maintenance and Repair Services - Belated payment of service tax due to their ignorance that they were liable to pay service tax - This is reasonable cause for extending the protection under section 80 of the Act - Thereore, set aside the impugned order and allow the appeal by setting aside the penalty under section 78 - Penalty under section 77 of the Act is however upheld.

Summary

The Appellate Tribunal CESTAT, Chennai, in the case of S. Raghu v. C. Rangaraju, challenged penalty under section 76 of the Finance Act, 1994. The penalty was set aside due to the assessees' ignorance of service tax liability, granting protection under section 80. The appeal was allowed, setting aside the penalty under section 78, but upholding the penalty under section 77.