2008 (9) TMI 224 - HC - Service Tax

Delay in depositing service tax penalty reduced from Rs. 11,179/- to Rs. 5,000/-, by Commissioner (Appeals) which has been upheld by the Tribunal - As the revenue effect is marginal, - Even otherwise, we find under Section 80 of the Finance Act upon establishing a reasonable cause for the said failure to deposit service tax within stipulated period, the penalty can be waived - the High Court is not inclined to entertain the appeal, which is accordingly dismissed

Summary

The Allahabad High Court dismissed the appeal by the revenue against the reduction of penalty imposed on the State Bank of India for delay in depositing service tax. The penalty was reduced from Rs. 11,179 to Rs. 5,000, and the Tribunal's decision was upheld. The Court cited that the revenue effect was only Rs. 600 and noted that under Section 80 of the Finance Act, the penalty could be waived for reasonable cause.