2008 (11) TMI 32 - AT - Service Tax

Original authority confirmed the demand along with interest and imposed equal amount as penalty u/s 78 and also imposed penalty u/s 76 - Commissioner (Appeals) upheld the demand of service tax and interest but reduced the penalty to 25% of the amount imposed u/s 78 and set aside the penalty imposed u/s 76 - By the stay petition, the Department seeks to recover the amount set aside/reduced by the Commissioner held that such a relief cannot be granted in an interim order.

Summary

The Appellate Tribunal CESTAT, New Delhi rejected a stay petition seeking to recover reduced penalties imposed on a service tax case. The original authority confirmed a service tax demand of Rs.5,24,493/- with penalties under Section 78 and 76. The Commissioner (Appeals) upheld the demand and interest but reduced the penalty to 25% of the amount under Section 78. The stay petition was deemed not well conceived and rejected.