2008 (1) TMI 185 - AT - Service Tax

Delay of 6 months in payment of tax assessee contended that in view of decision of CESTAT in All India Women s Conference v. CCE - 2006 (2) S.T.R. 9 (Tri.-Del.) failure to pay the Service Tax attracts the minimum penalty imposable u/s 76 penalty imposable as minimum penalty is Rs. 100 per day and the same would come to only Rs.15,900 instead of Rs. 69,900/- as imposed by the lower authorities Subject to the above modification, the impugned order is upheld

Summary

Issues:
Imposition of penalty under Section 76 of the Act.

Analysis:
The appeal was filed against the Order-in-Appeal, and both sides were heard. The Commissioner (Appeals) focused on the issue of whether the penalty of Rs. 69,990 was justifiable. The appellants claimed ignorance of the law, but the Commissioner noted that this ignorance could not have continued for six months, as payments were made belatedly. Referring to a previous judgment, the Commissioner upheld the imposition of the minimum penalty under Section 76 of the Act. The Service tax for the relevant period was paid late by six months.

Upon reviewing the impugned order, it was found that the penalty imposable as the minimum penalty was Rs. 100 per day, amounting to Rs. 15,900. The imposition of the minimum penalty under Section 76 was upheld, but the penalty amount was reduced to Rs. 15,900 from Rs. 69,900 imposed by the lower authorities. The impugned order was upheld with this modification, and the appeal was disposed of accordingly.