2009 (10) TMI 200 - AT - Service Tax

Penalty- Adjudicating authority confirmed demand of service tax for the period of 14.7.2003 to 31.8.2003 on assesese and also imposed equal amount of penalty under both section 76 and 78. From order of adjudicating authority it was found that impugned levy come into force w.e.f. 16.8.2002 and there was a dispute relating to the valuation of service in view of implementation of law. Held that- in view of litigation arose at the infancy stage of law penalty imposed u/s 76 and 78 was to be waived.

Summary

The Appellate Tribunal CESTAT, New Delhi confirmed the levy of service tax and interest but waived the penalty imposed under sections 76 and 78 of the Finance Act, 1994. The appeal was allowed partly.