2016 (5) TMI 190 - SCH - Service Tax

Waiver of penalty u/s 80 - service tax - Whether Section 80 of the Finance Act, 1994 envisages only a complete waiver of penalty once reasonable cause of failure is established by the assessee or whether the provision can also be applied to a level below the minimum penalties specified under Section 76 and 78 of the Finance Act, 1994. Held that - by following the judgment of this court in the case of Union of India and Others v. Dharamendra Textile Processors and Others 2008 (9) TMI 52 - SUPREME COURT , the appeal is allowed and the impugned order of the High Court 2007 (8) TMI 197 - HIGH COURT, BOMBAY is set aside. - Decided in favour of revenue

Summary

The Supreme Court considered whether Section 80 of the Finance Act, 1994 allows for a waiver of penalty below specified minimums. The High Court ruled in favor of the assessee, but the Supreme Court overturned this decision based on a previous judgment. The appeal was allowed and the High Court's order was set aside.