2007 (10) TMI 41 - AT - Service Tax

Penalty for non-deposit of service tax in relation to services provided to agricultural associations Lapse because of ignorance and under bona-fide belief Duty amount was deposited along with interest immediately on detection Penalty not imposable

Summary

The Appellate Tribunal CESTAT, New Delhi confirmed duty and interest against the appellant but set aside penalties for non-deposit of Service Tax. The appellant, a 'security services' provider, did not deposit tax for services to an agricultural association due to a belief that it was not required. They paid the tax with interest once the mistake was pointed out. The tribunal found the delay in depositing tax was covered by interest, so no separate penalty was justified.