2013 (5) TMI 425 - AT - Service Tax

Imposition of penalty - u/s 77 & 78 - Department states that deposit of Rs. 58,656/- said deposit was towards 25% of penalty u/s 78 and Rs. 10,000/- u/s 77 of the Act. Held that - Subject to verification of deposit particulars stay application is allowed as well as appeal partly directing the penalty u/s 78 to be reduced to Rs. 48,650/- and confirm penalty of Rs. 10,000/- u/s 77 of the said Act. Since the appellant says that deposit to the above extent has been made, concession in penalty shall be admissible, if the deposit particulars are correct. Thus, appeal is allowed to the extent indicated above partly.

Summary

The Appellate Tribunal CESTAT NEW DELHI upheld the levy of service tax. The dispute was regarding penalties under Sections 78 and 77 of the Finance Act, 1994. The penalty under Section 78 was reduced to Rs. 48,650, and the penalty under Section 77 was confirmed at Rs. 10,000. The appeal was allowed partly based on the deposit made by the appellant.