2017 (11) TMI 1693 - AT - Service Tax

Penalty u/s 78 - non-discharge of service tax liability on the GTA services received during the period February 2006 to March 2010 - Held that - It is on record that appellants had not discharged the service tax liability; as also after the orders have been passed, the entire tax liability has been discharged on 10.03.2014 i.e. after almost 1 years of passing of the impugned order - penalty cannot be set aside - appeal dismissed - decided against appellant.

Summary

The appeal was against the imposition of penalty under Section 78 of the Finance Act 1994 for non-discharge of service tax liability on GTA services. The appellant had not paid the tax liability until after the order was passed. The penalty was upheld as the interest on the outstanding tax had not been paid. The appeal was rejected.