2007 (12) TMI 141 - AT - Service Tax

Penalty - issue has been settled by this Tribunal in case of Mett Macdonald Ltd. vs CCE, Jaipur, holding that, imposition of penalty is sustainable when tax liability was paid only after the inquiry was conducted by the Dept. - there is no merit in the appellants contention that payment of tax demanded together with interest, prior to the issue of the SCN, would absolve them of the liability to pay penalty appeal rejected

Summary

The Appellate Tribunal CESTAT, New Delhi upheld the imposition of penalty on appellants providing maintenance and repair services, despite payment of Service Tax and interest, as tax liability was settled after inquiry by the Department. The appeal was rejected based on the precedent set in Mett Macdonald Ltd. vs CCE, Jaipur. (2007 (12) TMI 141 - CESTAT, New Delhi)