9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (9) TMI 1119 - AT - Service TaxPenalties u/s 76 and 78 - entire amount of service tax along with interest has been paid by the appellants - Held that - it is a fit case for invoking Section 80 of the Finance Act, 1994, as even though no service tax is payable on the services provided on the repair and maintenance of the vehicle during the warranty period, but the entire amount of service tax along with interest has been paid by the appellants - penalties set aside - appeal allowed - decided in favor of appellant.
Issues:
Penalties under Section 76 and Section 78 of Finance Act, 1994. Analysis: The appeal before the Appellate Tribunal CESTAT Ahmedabad was filed against the Order-in-Appeal passed by the Commissioner (Appeals), Central Excise, Customs, and Service Tax. The main issue in this case was whether penalties under Section 76 and Section 78 of the Finance Act, 1994 were applicable. The appellant, an authorized service station for vehicle repair and maintenance, had provided free services during the warranty period without collecting service tax from customers. However, upon audit, they paid the service tax along with interest. The appellant argued that, based on a Tribunal judgment, no service tax was payable on such services. They contended that since the entire service tax amount along with interest was paid promptly, Section 80 of the Finance Act should be invoked instead of imposing penalties under Sections 76 and 78. The Advocate for the appellant submitted that the imposition of penalties under Sections 76 and 78 was not justified in this case, given the circumstances and the prompt payment of service tax along with interest. The Revenue, represented by the A.R., reiterated the findings of the Commissioner (Appeals). The Member (Judicial) of the Tribunal agreed with the appellant's contention that Section 80 of the Finance Act should be invoked in this case. Consequently, the impugned order was set aside to the extent of the penalty imposed under Sections 76 and 78 of the Finance Act, 1994. The appeal was allowed on this ground, and the matter was disposed of accordingly.
|
