2007 (6) TMI 216 - AT - Service Tax

Enhancement of penalty - Assistant Commissioner, confirmed the duty and imposed penalty u/s 78 and 76 - said order was appealed against by the appellant as also reviewed by the Commissioner with the proposal to enhance the penalty imposed under Section 76 - Vide his impugned order, Commissioner enhanced the penalty - appellant submit that said order was appealed against by them before the Commissioner (Appeals) and the Commissioner (A) set aside the demand & penalty - As such, enhancement of penalty is not justifiable

Summary

The Appellate Tribunal CESTAT Ahmedabad ruled in favor of the appellant in a case involving service tax duty and penalties. The Commissioner had enhanced the penalty from Rs. 1,67,400 to Rs. 21,93,742, equivalent to the tax amount, which was appealed against. The Commissioner (Appeals) had earlier set aside the duty demand and penalty imposition. The Tribunal agreed with the appellant and allowed the stay petition.