2010 (5) TMI 144 - AT - Service Tax

Penalty- Commissioner (Appeals) has set aside the penalty imposed by the adjudicating authority under Section 78 of the Finance Act, 1994, while upholding the demand of service tax on Man-power Recruitment Service together with interest. The Revenue has challenged setting aside of the penalty. Held that- The lower appellate authority has extended the benefit in terms of Section 80, no merit in the appeal of the Revenue, which is accordingly dismissed.

Summary

The Commissioner (Appeals) set aside the penalty imposed under Section 78 of the Finance Act, 1994, but upheld the service tax demand on Man-power Recruitment Service with interest. The Revenue challenged the penalty setting aside, but the appeal was dismissed as the lower authority had granted benefit under Section 80 for reasonable cause of non-payment of tax.