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2009 (3) TMI 129 - AT - Service TaxPenalty section 76 delay in depositing service tax - dispute stands subsequently settled in terms of the provisions of Service Tax Dispute Resolutions Scheme, 2008 held that - As tax arrears include penalty and in respect of the same an order already stands passed by the designated authority under Section 96, Revenue s appeal for enhancement of penalty cannot be entertained in terms of Section 97. Accordingly, the same is dismissed
Issues: Disposal of appeals involving reduction of penalties, settlement under Service Tax Dispute Resolutions Scheme, 2008, and enhancement of penalty by Revenue.
The judgment delivered by Smt. Archana Wadhwa of the Appellate Tribunal CESTAT, Ahmedabad, involved the disposal of three appeals - two filed by the assessees and one by the Revenue. The Commissioner (Appeals) had reduced the penalties imposed by the Original Adjudicating Authority under Section 76 of the Finance Act, citing that delay in depositing service tax would not warrant higher penalties. The appellants had settled the dispute under the Service Tax Dispute Resolutions Scheme, 2008, providing orders from designated authorities under Section 96 (1) of the scheme, leading to the withdrawal of the appeals by the assessees. Regarding the Revenue's appeal for the enhancement of penalty, it was noted that the penalty dispute had already been resolved under the aforementioned scheme. Section 92 of the scheme clarified that tax arrears encompass penalties. Section 97 further stipulated that no appellate authority could decide on issues related to tax arrears specified in the declaration under Section 96. As the penalty was included in the tax arrears covered by the order from the designated authority, the appeal for penalty enhancement by the Revenue was dismissed. In conclusion, all three appeals were disposed of accordingly, with the assessees' appeals dismissed due to settlement under the scheme and the Revenue's appeal for penalty enhancement dismissed as the penalty issue had already been resolved under the scheme. The judgment was pronounced in court on 26.3.2009.
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