2008 (2) TMI 345 - AT - Service Tax

Penalty imposed on the findings that the service tax was paid six months late, though they were registered with the central excise authorities in view of decision of Larger Bench in the case of M/s. ETA Engineering Ltd. laying down that each day s delay attracts penalty of Rs.100/- per day, held that the appellate authority has already reduced the penalty and no further reduction is called for appeal of assessee is rejected

Summary

The appellant is not contesting the confirmation of service tax but is aggrieved with the penalty of Rs.40,000 imposed under Section 76 of the Finance Act, 1984 for late payment. The penalty was reduced from Rs.1,25,000 to Rs.40,000 by the Commissioner (Appeals). The delay in tax payment was 5 to 6 months, attracting a penalty of Rs.100 per day as per the Larger Bench decision in the case of M/s. ETA Engineering Ltd. The Tribunal upheld the penalty of Rs.40,000, stating that no further reduction was warranted.