2008 (7) TMI 251 - AT - Service Tax

Penalty imposed u/s 76 and u/s 77 - findings of Commissioner (Appeals) is that there was no intention on the part of the appellant to evade duty inasmuch as they are charitable trust and on coming to know of their liability, have come forward on their own on pay tax and interest, without intervention of the Department - on the face of evidence of bona fide of the appellants, the provisions of Section 80 of the Finance Act, 1994 would apply - no penalty is leviable

Summary

The Appellate Tribunal CESTAT, Ahmedabad confirmed the demand of duty and interest but set aside the penalties imposed on the appellant under Section 76 and Section 77. The appellant, a charitable trust, voluntarily paid the tax and interest without Department intervention. The Tribunal applied Section 80 of the Finance Act, 1994, based on the appellant's bona fide actions, as per the Larger Bench decision in ETA Engineering Ltd. v. CCE [2007] 8 STT 61 (New Delhi-CESTAT). The appeal was disposed of accordingly.