2009 (7) TMI 153 - AT - Service Tax

Application for waiver of pre-deposit of penalty - penalty imposed for belated payment of service tax by applicants on Courier Services - The period of dispute is Oct. 05 to Mar. 06 - The assessee herein has paid the tax amount prior to the issue of the show-cause notice and interest within a month after the issue of the show-cause notice. - applicants have made out a strong prima facie case for total waiver in the light of Circular No. 137/167/2006-Cx.4, dated 3-10-2007 clarifying that entire proceedings under the Finance Act, 1994 get concluded when the service tax and interest levied within the normal period of limitation are paid within a period of one month from the date of issue of show-cause notice. - Therefore, I waive the pre-deposit of penalty and stay recovery

Summary

The Appellate Tribunal CESTAT, Chennai heard an application for waiver of pre-deposit of penalty of Rs. 3,72,009 imposed on "Courier Services" for belated payment of service tax. The Tribunal waived the penalty as the tax amount was paid before the show-cause notice and interest was paid within a month after the notice, in accordance with Circular No. 137/167/2006-Cx.4. Recovery of penalty was stayed pending appeal.