2010 (1) TMI 163 - AT - Service Tax

Penalty- The appellant was not aware of the liability to service tax on service of maintenance and repair and erection commissioning and installation and on being made aware of the liability to tax he paid the entire service tax amount. Held that- set aside the penalty imposed u/s 78 but uphold penalty u/s 77. The appeal is thus allowed in part.

Summary

The Appellate Tribunal CESTAT, Chennai ruled in favor of the appellant, setting aside the penalty imposed under section 78 of the Finance Act, 1994 due to lack of suppression. However, the penalty under section 77 was upheld as the appellants had contravened the provisions of the Act by not filing returns. The appeal was allowed in part.