2010 (6) TMI 43 - AT - Service Tax

Penalty u/s 78 since the assessee was not aware of their liability of tax and on being informed by the department in writing in August 2004 to their liability they paid the entire tax and interest for the period 2003-04 in Oct-04 penalty set aside.

Summary

The Appellate Tribunal CESTAT, Chennai heard an appeal regarding the imposition of a penalty for belated payment of service tax. The assessees were not aware of their tax liability and paid the tax and interest promptly upon being informed by the department. The penalty was set aside, and the appeal was allowed.