2008 (6) TMI 111 - AT - Service Tax

Commissioner (Appeals) after taking into consideration the fact that the respondent deposited some amount immediately when revenue pointed out the same and exercised the discretion by reducing the penalty imposed under Section 76 & 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 is rejected - no ground to interfere with the discretion exercised by the Commissioner (Appeals) u/s 80

Summary

The Appellate Tribunal CESTAT, New Delhi heard appeals by the revenue against a penalty reduction under Section 76 & 78 of the Finance Act. The penalty under Section 78 was reduced from Rs. 255411 to Rs. 227481 by the Commissioner (Appeals). The Tribunal found that Section 80 of the Finance Act allows for no penalty if reasonable cause is proven for the failure. The Commissioner (Appeals) reduced the penalty to Rs. 27930 considering the immediate deposit made by the respondent when the issue was pointed out. The Tribunal upheld the Commissioner's discretion, and the revenue's appeals were dismissed.