2010 (1) TMI 167 - AT - Service Tax

Penalties- The assessees are aggrieved by the imposition of penalties imposed under the provisions of sections 76 and 78 of the Finance Act, 1994 for non-payment of service tax within time. Held that- The burden on the Revenue to establish suppression on the part of the assessee with intention to evade payment of tax has not been discharged. I, therefore, set aside the penalties imposed under sections 76 and 78 - the assessee do not challenge the penalty of Rs. 1,000 imposed under section 77 of the Act - and allow the appeal.

Summary

The Appellate Tribunal CESTAT, Chennai ruled in favor of the assessee, setting aside penalties imposed under sections 76 and 78 of the Finance Act, 1994 for non-payment of service tax within time. The tribunal found that the burden on the Revenue to establish suppression on the part of the assessee with intention to evade payment of tax was not met. The penalty of Rs. 1,000 imposed under section 77 was not challenged and upheld.