2007 (12) TMI 108 - AT - Service Tax

Comm (A) reduced penalty as tax has been paid with interest there is justification in contention of revenue based on the language of Sections 76 and 78 that the penalty prescribed therein is the minimum penalty - penalty imposed by the adjudicating authority has not exceeded the service tax payable by the respondents - impugned order is set aside by restoring penalty to the level imposed by the adjudicating authority and allow the revenue s appeal

Summary

The Appellate Tribunal CESTAT, New Delhi upheld the Revenue's appeal regarding penalty reduction under Sections 76 and 78 of the Finance Act, 1994. The penalty imposed should not be less than the minimum prescribed. The penalty was restored to the level imposed by the adjudicating authority as it did not exceed the service tax payable by the respondents. The appeals were allowed.