2016 (3) TMI 573 - AT - Service Tax

Imposition of penalty under Section 77 & 78 of Finance Act, 1994 - Tax paid with interest - Held that - When there was amendment of the law to grant immunity from persecution in terms of the Finance Act, 2010, the penalty proceeding being quasi-criminal in nature, so the appellant also deserves consideration for exoneration from levy of penalty. therefore, levy of penalty under section 78 is waived of. However, the penalty under section 77 shall be maintained since there is concurrent liability. - Decided partly in favour of appellant

Summary

The Appellate Tribunal CESTAT CHENNAI waived penalty under section 78 but confirmed tax, interest, and penalty under section 77 for the appellant in a case related to service tax on Renting of Immovable Property. The appellant had already paid the tax liability with interest. The decision was influenced by an amendment in the law granting immunity from persecution.