2008 (4) TMI 197 - AT - Service Tax

Scope of Extra Ordinary Tax Payer Friendly Scheme - appellant had already discharged the Service Tax liability along with interest - hold that the Extra Ordinary Tax Payer Friendly Scheme would be applicable even to cases where registration had been taken much earlier - complete waiver of the penalties imposed is given

Summary

Issues: Liability under Sections 78 and 76 of the Finance Act, 1994; Applicability of the "Extra Ordinary Tax Payer Friendly Scheme" to pre-registered individuals.

In this judgment by the Appellate Tribunal CESTAT Bangalore, the appellant was directed to pre-deposit penalties of Rs. 24,300 under Section 78 and Rs. 32,225 under Section 76 of the Finance Act, 1994. The appellant's advocate argued that the liability arose before March 2004, and Service Tax with interest was paid before the cut-off date of 30-8-2004 for the "Extra Ordinary Tax Payer Friendly Scheme." Citing case laws like Rakesh Rao v. CCE, Nasik and Now Courier & Cargo v. CCE & C, Nashik, the advocate contended that the scheme should apply even to those registered before its introduction in 2004. The registration in this case was done in 2000. On the other hand, the Departmental Representative argued that the scheme does not apply to individuals registered before its introduction, and this point was not raised by the appellant earlier.

The Tribunal, after careful consideration, noted that the appellant had already paid the Service Tax liability with interest. Relying on the case laws presented, the Tribunal held that the Extra Ordinary Tax Payer Friendly Scheme could be extended to cases where registration predated the scheme's introduction. Consequently, the Tribunal ordered a complete waiver of the imposed penalties until the appeal's final disposal. The judgment was pronounced and dictated in open court by the Member (T).