2009 (4) TMI 417 - AT - Service Tax

Penalty - For failure to pay service tax, lower authority determined service tax of Rs. 36,901 and imposed penalty u/s 76 and 78 equally. Held that- penalty equal to twice amount of tax determined was harsh and same was to be reduced to Rs. 36,901.

Summary

The Appellate Tribunal CESTAT, New Delhi heard an appeal where penalties amounting to Rs. 36,901 each were imposed under sections 76 and 78 of the Finance Act, 1994. The Tribunal found the penalties to be harsh and unwarranted, reducing them to Rs. 36,901 in total. The appellants were directed to pay the balance amount of Rs. 16,401 after adjusting the already deposited Rs. 20,500. The appeal was partly allowed in these terms.