2008 (9) TMI 45 - AT - Service Tax

Commissioner (Appeals), reduced the penalty from Rs.34,000/- to Rs.5,000/- by observing that the entire service tax was deposited by the respondent before adjudication - dispute is as regards payment of service tax in respect of services of rent-a-cab to BSNL. During the relevant time, there was confusion as regards scope of various services and as soon as the appellants were directed to deposit the amount, they did so - no justification for enhancing the penalty as prayed for by Revenue

Summary

The Appellate Tribunal CESTAT AHMEDABAD rejected the appeal filed by Revenue regarding a penalty reduction in a service tax case involving rent-a-cab services provided to BSNL. The penalty was reduced from Rs.34,000 to Rs.5,000 as the entire service tax was deposited before adjudication. The tribunal found no justification for increasing the penalty.