2016 (12) TMI 669 - AT - Service Tax

Imposition of penalty under Section 76 of the Finance Act, 1994 - during the period of 01.06.2007 to 31.03.2008, the appellant did not pay service tax under the category of Renting of Immovable Property services as levy of service under the category of Renting of Immovable Property was in dispute. Later on, the levy of service tax was held ultra virus. After the retrospective amendment, the matter approach to Hon ble Apex Court where the matter is still pending - Held that - The appellant has paid service tax along with interest before issuance of the show cause notice. In that circumstances, I hold that penalty under Section 76 of the Finance Act, 1994 is not imposable on the appellant. Accordingly, penalty under section 76 of the Finance Act, 1994 is set aside - appeal allowed - decided in favor of appellant-assessee.

Summary

The appellant contested penalty under Section 76 of the Finance Act, 1994 for not paying service tax on Renting of Immovable Property services during 01.06.2007 to 31.03.2008. The levy of service tax was held ultra vires and the matter is pending in the Hon'ble Apex Court. The appellant paid service tax with interest before the show cause notice. Penalty under Section 76 of the Finance Act, 1994 was not imposed and set aside. The appeal was disposed of accordingly.