2008 (8) TMI 249 - AT - Service Tax

Adjudicating authority confirmed the demand of Rs. 3,567/- but imposed penalty of Rs. 24,792/-. On appeal by the assessee, the Commissioner (Appeals) reduced the penalty to Rs. 3,567/- i.e. equal to the amount of service tax. Section 76 of the Finance Act, 1994 lays down in clear terms that penalty shall not exceed the service tax payable - order of the Commissioner (Appeals) is in accord with the provisions of Section 76 and therefore, requires no interference by the Tribunal.

Summary

The Appellate Tribunal CESTAT NEW DELHI upheld the Commissioner (Appeals) decision to reduce penalty to Rs. 3,567, equal to the service tax amount, as per Section 76 of the Finance Act, 1994. The appeal was dismissed.