2008 (4) TMI 199 - AT - Service Tax

Learned Counsel submits that the respondents business is located in the remote area of Himachal Pradesh and they have deposited the tax as soon as it came to their knowledge - penalty under Section 76 of the Act cannot be set aside merely on the ground that the assessee deposited the tax before issue of show cause notice - Commissioner (Appeals) dropped the penal provisions without considering the facts and circumstances of the case in proper manner matter remanded

Summary

The Revenue appealed against the Commissioner (Appeals) order setting aside penalty under Section 76 of the Finance Act. The Appellate Tribunal found that penalty under Section 76 cannot be set aside solely because tax was deposited before the show cause notice. The case was remanded back to the Commissioner (Appeals) for proper consideration, with a direction to provide a hearing to the respondents. The appeal by the Revenue was allowed for remand.