2010 (3) TMI 441 - AT - Service Tax

Event Management service- penalties imposed under Sections 76, 77 and 78 of the Finance Act, 1994 on the respondents herein who are providing Event Management service, on the ground that they were under a bona fide belief that they were not liable to pay Service tax. Held that- the assessees are liable to penalty. However, penalties under Sections 76 and 78 are mutually exclusive. Therefore, allow the appeal of the Revenue partly by upholding the penalties imposed by the adjudicating authority under the provisions of Section 78 and upholding the penalty of Rs. 1,000/- under Section 77 of the Finance Act, 1994. The appeal is thus partly allowed as above.

Summary

The Appellate Tribunal CESTAT, Chennai partly allowed the appeal by upholding penalties imposed under Section 78 and a penalty of Rs. 1,000 under Section 77 of the Finance Act, 1994 on respondents providing 'Event Management' service. The penalties under Sections 76 and 78 are mutually exclusive. The respondents were not considered eligible for protection under Section 80 as they paid tax and interest only after the appeal was restored before the Tribunal.