2010 (5) TMI 114 - AT - Service Tax

Penalty- The challenge in appeal is the imposition of penalties under the provisions of Section 76, 77 and 78. held that- as there was bonafide belief, set aside penalties imposed under Section 76 and 78.

Summary

The Appellate Tribunal CESTAT, Chennai ruled on penalties imposed under Sections 76, 77, and 78. The appellants were not aware of their liability to pay service tax initially as they believed export consignments were exempt. Penalties under Sections 76 and 78 were set aside, only upholding the penalty under Section 77. The appeals were partly allowed.