2010 (7) TMI 234 - AT - Service Tax

Penalty - Appellant challenge the penalty u/s 76 and 78. Held that - penalty u/s 76 was to be set aside as section 76 and 78 are mutually exclusive. Since the assessee had not paid service tax on total turnover during relevant period assessee was guilty of suppression and penalty u/s 78 had rightly been imposed on it.

Summary

The Appellate Tribunal CESTAT, Chennai upheld the liability for service tax on "Cable Operator Service" but set aside penalty under section 76 and imposed penalty under section 78 for suppressing turnover value. The appeal was partly allowed.