2010 (1) TMI 183 - AT - Service Tax

Penalty- the Adjudicating authority dropped proceedings for imposition of penalty under sections 76 and 78 of the Finance Act, 1994 on the ground that the service tax liability had been discharged together with interest prior to the issue of the show-cause notice. In revision, the Commissioner imposed a penalty of Rs. 1,24,607 in terms of section 76, together with penalty of Rs. 1,000 under section 77, hence this appeal. Held that- appeal is partly allowed by reducing the penalty.

Summary

The Adjudicating authority dropped penalty proceedings under sections 76 and 78 as tax liability was paid before notice. Commissioner imposed penalty of Rs. 1,24,607 and Rs. 1,000. Tribunal reduced penalty to Rs. 21,079, the admitted tax liability, and upheld Rs. 1,000 penalty for late filing of returns.