2008 (9) TMI 236 - HC - Service Tax

Delay in depositing service tax - revenue has preferred the appeal against the order of the Tribunal upholding the reduction of penalty by Commissioner (Appeals) - As the revenue effect is only Rs. 600/- and odd the Court is not inclined to entertain the appeal which is accordingly dismissed - Even otherwise we find under Section 80 of the Finance Act upon establishing a reasonable cause for the said failure to deposit service tax within stipulated period the penalty can be waived revenue s appeal dismissed

Summary

The Allahabad High Court dismissed the appeal by the revenue against the reduction of penalty imposed on State Bank of India for delay in service tax deposit. The penalty was reduced to Rs. 2000 from Rs. 4,897 and upheld by the Tribunal. The Court cited Section 80 of the Finance Act, stating that the penalty can be waived upon establishing a reasonable cause for the failure to deposit service tax on time.