2018 (4) TMI 109 - AT - Service Tax

Penalty on appellant - service tax demand paid alongwith interest - renting of immovable property - Held that - Admittedly service tax stands deposited within a period of six months in which case no penalties shall be imposable on the appellants - reliance placed in the case of Shri P. Patel & Others Versus CST Ahmedabad 2012 (9) TMI 140 - CESTAT AHMEDABAD where it was held that As the appellants though initially contested the service tax liability but on 28.09.11 paid the entire amount of service tax liability as confirmed by the lower authorities along with interest case is squarely covered for non imposition of penalties u/s 80A - penalties set aside - appeal allowed - decided in favor of appellant.

Summary

Issues: Penalties imposed on appellants for service tax on renting of immovable property.

In this judgment by the Appellate Tribunal CESTAT ALLAHABAD, the appeals were disposed of collectively as they all challenged penalties imposed on appellants arising from the same impugned order. The Advocate submitted death certificates for two appellants, leading to the abatement of their appeals as per Rule 22 of CESTAT Procedural Rules, 1982. For the remaining appellants, the issue revolved around service tax demands for renting immovable property, which were paid along with interest. The tribunal referred to a Delhi High Court case and the introduction of Section 80A in the Finance Act, 2012, stating that if the service tax liability along with interest is discharged within six months, no penalty shall be imposed. Citing precedent decisions, the tribunal set aside the penalties imposed on the appellants whose appeals were not abated, thereby disposing of all the appeals accordingly.

This judgment highlights the importance of timely payment of service tax liabilities to avoid penalties, as per the provisions of Section 80A of the Finance Act, 2012. It also emphasizes the significance of abatement of appeals in case of the demise of appellants, in accordance with procedural rules. The tribunal's decision to set aside the penalties showcases a consistent application of legal principles and precedent decisions to ensure fair treatment of appellants in tax-related matters. The reference to relevant case law and procedural rules demonstrates a thorough analysis by the tribunal in reaching its decision, providing a clear rationale for the outcome of the appeals.