2015 (10) TMI 1055 - AT - Service Tax

Penalty under Section 77 Revenue contends that concessional penalty should not have been granted and penalty under section 77 should have been imposed Respondent contends that service tax liability with all the penalties imposed was discharged. Held That - No questionable conduct of Respondent found; Penalty under Section 77 cannot be imposed Appeal of Revenue dismissed and decided in favour of the Appellant.

Summary

Issues:
1. Appeal against dismissal of appeal by Commissioner (Appeals) due to belated filing.
2. Validity of the appeal filed by Revenue within the limitation period.
3. Merit of the case regarding the payment of service tax, interest, and penalty.
4. Dispute over the imposition of concessional penalty instead of penalty under section 77.
5. Decision on the appeal based on limitation, merit, and penalty imposition.

Analysis:
1. The appeal was filed by Revenue against the dismissal of their appeal by the Commissioner (Appeals) due to being belatedly filed beyond the limitation prescribed by section 84 of the Finance Act, 1994.
2. The Revenue's submission was accepted as the appeal was filed within three months of the order by the adjudicating authority, following the law laid down by the Apex Court in a specific case.
3. On the merit of the case, it was noted that the service tax on transport of goods service was paid and discharged by the respondent along with the interest and penalty imposed by the adjudicating authority.
4. The only grievance of Revenue was the grant of concessional penalty instead of imposing penalty under section 77, which they argued against.
5. While Revenue succeeded on the limitation issue, the Tribunal did not agree with them on imposing penalty under section 77 or enhancing penalty under section 78 due to the lack of questionable conduct by the respondent. The appeal was dismissed based on detailed reasoning provided by the adjudicating authority and the failure to meet the pecuniary grounds prescribed by the Board for appeal.