2007 (11) TMI 274 - AT - Service Tax

Appellant was engaged in the business of clearing and forwarding, came to know that tax is payable only after visit by the officers in July, 2004 - they have paid the duty on 22-7-04 and the interest involved - appellant is a small scale service provider and was new to the profession - Commissioner has sustained the penalty on the ground there was a delay of 1098 days (more than three years) in paying service tax which on the facts of the case is incorrect penalty waived

Summary

The Appellate Tribunal CESTAT Ahmedabad granted waiver of pre-deposit of penalty and proceeded to hear the appeal itself for final disposal. The appellant, a new business in clearing and forwarding, paid duty and interest after being informed by officers. The penalty under Section 76 was reduced from Rs. 35,000 to Rs. 20,000 by the Commissioner (Appeals). The penalty was set aside and the appeal was allowed due to the appellant's lack of knowledge in service tax law.