2008 (10) TMI 114 - AT - Service Tax

Penalty - respondent had discharged the Service Tax liability after the receipt from their clients - Commissioner (A) has stated that there is no justification even for issuing the SCN and in fact there is no delay also in the payment of Service Tax - they had also taken registration on time - since amount involved is also very meager that is Rs. 2583 Commissioner (A) is justified in holding that penalties under Section 76 77 and 78 are not imposable - Revenue s appeal is rejected

Summary

The Appellate Tribunal CESTAT, Bangalore, rejected the revenue appeal against Order-in-Appeal No. 108/2007 C.E. dated 9-3-2007. The Commissioner dropped the penalties as the respondent had paid the Service Tax liability on time. The Tribunal agreed with the Commissioner that there was no justification for penalties under Section 76, 77, and 78, especially considering the small amount involved (Rs. 2583). The revenue's appeal was rejected.