2008 (6) TMI 11 - AT - Service Tax

Commissioner (Appeals) reduced the penalty under Section 78 - contention of the revenue is that as per the provisions of Section 78, the penalty should be equal to the amount of service tax - respondent deposited amount immediately when revenue pointed out - commissioner has rightly exercised the discretion u/s 80 by reducing the penalty

Summary

The Appellate Tribunal CESTAT NEW DELHI upheld the decision of the Commissioner(Appeals) to reduce penalty under Section 78 of the Finance Act. The Tribunal found no grounds to interfere with the discretion exercised by the Commissioner(Appeals) as the respondent proved reasonable cause for the failure. The appeals filed by the revenue were dismissed.