2008 (12) TMI 150 - AT - Service Tax

Recovery of Service Tax Section 73 - Once the penalty proposed to be imposed under the provision of section 78 was set aside and the ingredients of the section had not been made out the question of confirming the demand for the extended period of limitation does not arise. The revenue has not challenged the finding of the Deputy Commissioner with regard to fraud collusion etc. which was not committed by the assessee with intent to evade payment of service tax. In these circumstances there is no erroneous finding in the order of the lower authority holding that the extended period of limitation is not attracted against the assessee

Summary

The Appellate Tribunal CESTAT, New Delhi upheld the lower authority's decision to set aside the penalty under sections 76 and 77 of the Act due to limitation issues. The Tribunal rejected the appeal by the revenue against the setting aside of the service tax demand and penalty under section 76. The Tribunal found no fraud, collusion, or intent to evade payment of service tax by the assessee.