2010 (6) TMI 301 - AT - Service Tax

Belated payment of service tax - on construction of residential complex - assessees was not aware of the levy Held that - extend the protection under section 80 of the Act by setting aside the penalties under sections 76 and 78. Penalty under section 77 of the Finance Act 1994 is however upheld as there is no cause to set it aside.

Summary

The Appellate Tribunal CESTAT, Chennai ruled in favor of the assessee regarding penalties under sections 76 and 78 of the Finance Act, 1994 for belated payment of service tax on construction of residential complex. The penalties under sections 76 and 78 were set aside due to reasonable cause for failure to pay tax on time. However, the penalty under section 77 was upheld. The appeal was partly allowed.