2009 (4) TMI 335 - HC - Service Tax

Penalty not imposed- reasonable cause- whether the Commissioner(Appeals) has a power to reduce penalty imposed under section 76? In the light of the decision in case of CCE&C v. D.R. Gade 2008 16 STT 249, Commissioner (Appeals) by showing reasonable cause penalty can be reduced. Held that- there is no merit in the appeal of the revenue, thus the appeal is to be dismissed.

Summary

The High Court of Bombay dismissed the appeal by the Revenue on the grounds that the Tribunal had the power to reduce the penalty imposed under section 76, citing the authority under section 80 of the Finance Act, 1994. The appeal was found to have no merit.