2010 (7) TMI 213 - AT - Service Tax

Penalty - The challenge in the present appeal is only to penalties imposed upon under sections 76 and 77 of the Finance Act. The penalties stand imposed upon him for late filing of returns and for late deposit of service tax. Commissioner (Appeals) confirm the penalty. Held that - since Commissioner (Appeals) had not given any findings on malafide intention of assessee, impugned order was to be set aside.

Summary

Issues:
Penalties imposed under sections 76 and 77 of the Finance Act for late filing of returns and late deposit of service tax.

Analysis:
The appellant, a registered service provider under the category of "servicing of motor vehicle service," challenged the penalties imposed on them. The appellant contended that they had deposited the service tax along with interest on their own without any demand from the department, indicating no intention to evade duty. They cited several decisions to support their argument. The Tribunal noted that the Commissioner (Appeals) did not consider the decisions provided by the appellant or address the mala fide intention aspect. Consequently, the Tribunal set aside the impugned order and remanded the matter to the Commissioner for a fresh decision in light of the legal principles established in the referenced judgments. The Commissioner was directed to also consider the provisions of section 73(3) of the Finance Act, which state that proceedings can be finalized without a show-cause notice if the tax is deposited before such notice is issued. The appeal was allowed for remand, emphasizing the need for a comprehensive reconsideration of the case.