2007 (12) TMI 149 - AT - Service Tax

Erection, Installation and Commissioning of plant & machinery and equipments - entire Service Tax together with interest was paid - Held that imposition of penalty is sustainable when tax liability was paid only after the inquiry was conducted by the Department - there is no merit in the appellants contention that payment of tax together with interest, prior to the issue of the show cause notice, would absolve them of the liability to pay penalty - reject the appeal of assessee

Summary

The Appellate Tribunal CESTAT, New Delhi upheld the imposition of penalty on the appellants for providing services of Erection, Installation, and Commissioning of plant & machinery. The appellants had paid the Service Tax and interest, but penalty was imposed as the tax liability was settled only after the Department's inquiry. The appeal was rejected based on the precedent set in the case of Mett Macdonald Ltd. vs CCE, Jaipur. (2007 (12) TMI 149 - CESTAT, New Delhi)