2008 (7) TMI 300 - AT - Service Tax

Reduction of penalty - Respondent was providing service of Rent a Cab service to M/s. BSNL - the respondent had neither charged any service tax from the BSNL nor the BSNL had paid the tax to them - After detection by the Central Excise officers, the respondent paid the tax along with interest before issue of show cause notice - respondent is a lady residing in a village and she was not aware of service tax - finding of the Commissioner (Appeals) of reducing penalty require not interference

Summary

The Appellate Tribunal CESTAT, New Delhi ruled in favor of the respondent in a case involving service tax payment for Rent a Cab Scheme Operator services provided to BSNL. The respondent paid the tax with interest before any show cause notice was issued, and penalties imposed by the Adjudicating Authority were set aside by the Commissioner (Appeals). The Tribunal rejected the Revenue's appeal, considering the respondent's lack of awareness about service tax and the circumstances of the case.