2015 (1) TMI 346 - AT - Service Tax

Waiver of penalties - Hed that - Following decision of Guntur Municipal Corporation, in 2015 (1) TMI 289 - CESTAT BANGALORE penalties imposed on the appellants are waived subject to the condition that appellants pay the entire amount of service tax with interest within eight weeks and report compliance before the Tribunal on 09/02/2015 and also to the jurisdictional officer in-charge of the Revenue - Partial stay granted.

Summary

Issues involved:
Waiver of penalties in a service tax case based on precedent decisions.

Analysis:
The judgment pertains to a case where the appellants were not contesting the levy of service tax with interest but sought the waiver of penalties imposed on them. The appellants cited a precedent decision of the Hon'ble Tribunal involving Guntur Municipal Corporation, where penalties were waived. The appellants requested the same treatment, emphasizing that similar orders were passed for other Municipalities and Municipal Corporations. The appellants prayed for the waiver of penalties on the condition that they pay the entire service tax amount with interest within eight weeks to the satisfaction of the Jurisdictional Assistant Commissioner/Deputy Commissioner and report compliance to the Tribunal and the Jurisdictional Officer in charge of the Division.

The judgment notes that the Learned Additional Commissioner had no objection to the waiver of penalties. Following the precedent decisions and considering the appellants' submission, the Tribunal decided to waive the penalties imposed on the appellants. The waiver was subject to the condition that the appellants fulfill their obligation of paying the entire service tax amount with interest within eight weeks. The appellants were required to report compliance before the Tribunal and the jurisdictional officer in-charge of the Revenue by a specified date. The appeal was disposed of based on these terms, and the stay application was also disposed of accordingly.

In conclusion, the judgment highlights the importance of precedent decisions in determining the outcome of waiver requests in service tax cases. The appellants' compliance with the conditions set by the Tribunal was crucial for the waiver of penalties, emphasizing the significance of timely payment of the service tax amount with interest. The judgment demonstrates the Tribunal's adherence to established precedents and the requirement for appellants to meet specified conditions for favorable outcomes in penalty waiver requests.