2009 (2) TMI 36 - AT - Service Tax

Penalty imposed under Section 76 and 75A - delay for deposit of taxes - appellant submits that because his father was suffering from cancer, he had no means to make payment of their tax due - no deliberate failure nor there was breach of law no intention to evade the payment of tax - finding the cause to be reasonable attracting Section 80, penalty imposed u/s 76 is waived penalty imposed under Section 75A is not covered by the Section 80, so it is upheld

Summary

The Appellate Tribunal CESTAT, New Delhi partially allowed the appeal by waiving the penalty of Rs. 66,370 under Section 76 but confirmed the penalty of Rs. 500 under Section 75A of the Finance Act, 1994. The appellant's payment of taxes was considered, and the reasons for the delay were found reasonable due to the appellant's father suffering from cancer, causing financial hardship.