2007 (1) TMI 625 - AT - Service Tax

Summary

Issues involved: Appeal by Department against Order of Commissioner (Appeals) regarding penalty imposition under various sections of the Finance Act, 1994.

Summary:

Issue 1: Duty demand and penalty imposition
The appellants provided security services and a duty of &8377; 1,68,442/- was demanded for a specific period. The Asstt. Commissioner confirmed the duty demand and imposed penalties under sections including &8377; 1,68,442/- u/s. 76 and another &8377; 1,68,442/- u/s. 78 of the Finance Act, 1994. The Commissioner (Appeals) found reasonable grounds for the failure to submit the Return of Service Tax and delay in payment, granting waiver of penalty u/s. 80 of the Finance Act, 1994. He noted the absence of evidence of intention to evade Service Tax and reduced the penalty u/s. 76 to &8377; 25,000/- from &8377; 1,68,442/-.

Issue 2: Valid grounds for penalty enhancement
The department failed to provide valid grounds for enhancing the penalty beyond what was upheld by the Commissioner (Appeals).

Conclusion:
The appeal by the Department was rejected, affirming the decision of the Commissioner (Appeals) regarding the penalty imposition under various sections of the Finance Act, 1994.