2007 (7) TMI 246 - AT - Service Tax

Penalty imposed u/s 76 in review order passed by commissioner in remand from tribunal original authority has already reduced duty liability and has already imposed penalty u/s 75A and 77 accordingly held that once the adjudicating authority has decided on the penalty it is not open to the Review authority to enhance the same - prima facie there is no justification for imposition of penalty under Section 76 - full waiver of deposit of penalty is granted

Summary

Issues:
1. Stay application and appeal against Review Order imposing penalty under Section 76 of the Finance Act.

Analysis:
The appellant filed a stay application and appeal against the Review Order passed by the Commissioner of Service Tax, Bangalore, requiring a deposit of Rs. 78,491/- towards penalty under Section 76 of the Finance Act. The original authority had reduced the duty liability but imposed penalties for non-registration and non-filing of returns. The Commissioner reviewed the order and imposed a penalty under Section 76 of the Act. The appellant argued that once the adjudicating authority decides on the penalty, the review authority cannot enhance it, citing relevant case laws.

The Tribunal considered the matter and observed that there was no justification for imposing a penalty under Section 76 of the Finance Act, especially in light of established case laws. Consequently, the Tribunal ordered a full waiver of the penalty deposit until the appeal hearing, allowing the stay application. The appeal was scheduled to proceed accordingly. The judgment was pronounced and dictated in open court by the Member.

This comprehensive analysis covers the issues raised in the judgment, detailing the arguments presented by the parties, the legal principles applied, and the final decision rendered by the Tribunal.