2008 (4) TMI 73 - AT - Service Tax

Application by revenue seeking grant of stay of order of Commissioner (A) setting aside the penalties - Commissioner observed that entire tax with interest was deposited before SCN so penalty is not justified - stay of the Commissioner order would enable Dept. to realise dues, which would not be proper without adjudication on merit by the Tribunal - At this stage, we are not inclined to go into the question of propriety of the imposition of penalty, so application is rejected

Summary

The Appellate Tribunal CESTAT, New Delhi rejected the Revenue's application for stay of the Commissioner (Appeals) order setting aside penalties imposed on the respondent under Sections 75A, 76, 77, and 78 of the Finance Act, 1994. The respondent had already paid the service tax liability, and the dispute was only regarding penalties. The Tribunal decided not to grant a stay, as it would enable the Department to recover dues without a full adjudication on merit.