2012 (9) TMI 488 - AT - Service Tax

Penalty Held that - Education Cess is meant for specific purpose i.e. for welfare of the state, the appellant is not entitled to get credit of the same - Looking to the welfare aspect of the law, there should not be penalty on the appellant under Section 76 of the Finance Act, 1994 - appeal is partly allowed annulling penalty.

Summary

The Appellate Tribunal CESTAT, New Delhi, in the case of 2012 (9) TMI 488, ruled that the appellant is not entitled to credit for Education Cess of Rs. 11,239 as it is meant for the welfare of the state. The penalty under Section 76 of the Finance Act, 1994, was annulled in consideration of the welfare aspect of the law. The appeal was partly allowed, and the stay application was disposed of.