2010 (4) TMI 813 - AT - Service Tax

Penalty - imposition of only 25 per cent of penalty on the respondents, who paid part of the service tax prior to the issue of the show-cause notice and the balance tax along with interest prior to adjudication, on the ground that mandatory penalty of amount equal to the tax payable was required to be imposed - payment of 25 per cent of the penalty was sufficient. order upheld and the appeal rejected.

Summary

The Appellate Tribunal CESTAT, Chennai upheld the imposition of only 25% penalty on the respondents for paying part of the service tax before the show-cause notice and the rest before adjudication. The decision was based on a CBEC Circular and a previous Tribunal ruling. The appeal by the Revenue was rejected.