2006 (12) TMI 560 - AT - Service Tax

Summary

Issues involved: Reduction of penalty by the Commissioner (Appeals) and aggrieved revenue challenging the same.

ST/01/2005:
The revenue appealed against the reduction of penalty to Rs. 50,000 by the Commissioner (Appeals), while the assessee did not contest the service tax and interest but sought a decrease in the penalty imposed under section 76. The Commissioner (Appeals) found no mala fide intention to evade tax and reduced the penalty based on the non-operational status of the assessee's company. The Appellate Tribunal upheld the reduction, emphasizing the absence of tax evasion intent and the company's non-operational status as valid reasons for the penalty reduction.

ST/07/2005:
In this case, the revenue challenged the reduction of penalty from Rs. 1,11,796 to Rs. 10,000 by the Commissioner (Appeals). The Commissioner (Appeals) noted that the amounts were paid by the assessee and there was no suppression of taxable service value with an intent to evade duty. The Appellate Tribunal concurred, stating that the reduction of penalty was justified due to the absence of facts suppression or tax evasion intent. The appeal was dismissed based on the lack of merit in challenging the penalty reduction.