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2018 (4) TMI 1506 - AT - Service TaxPenalty - tax demand paid before issuance of SCN - invocation of section 80 - Held that - the benefit of section 80 of the Finance Act is available to the appellant as per the ratio laid down in Union of India vs. M/s. Rajasthan Spinning & Weaving Mills 2009 (5) TMI 15 - SUPREME COURT OF INDIA , where it was held that the assessees had made payment of the demands simply in order to buy peace and to avoid any litigation. In those circumstances the imposition of penalty was wholly unjust, unwarranted and unauthorised in law - penalty set aside by invoking section 80 - appeal dismissed - decided against Revenue.
Issues Involved:
Department's appeal against cancellation of penalty under section 80 of the Finance Act, 1994. Analysis: The present appeal was filed by the department challenging the Order-in-Appeal cancelling the penalty levy under section 80 of the Finance Act, 1994. The Commissioner (Appeals) had granted benefit to the assessee by canceling the penalty. The respondent did not appear during the proceedings. The Tribunal heard the department's representative and reviewed the available material. It was noted that the respondent had paid the tax demand before the show cause notice was issued. Citing relevant case law, including decisions by the Supreme Court and various CESTAT benches, the Tribunal concluded that the appellant was entitled to the benefit under section 80 of the Finance Act. Therefore, the Tribunal found no grounds to interfere with the impugned order and upheld it, dismissing the department's appeal. The judgment was dictated and pronounced in open court by the Tribunal. This judgment primarily dealt with the department's appeal against the cancellation of penalty under section 80 of the Finance Act, 1994. The Tribunal considered the circumstances where the respondent had paid the tax demand before the issuance of the show cause notice. By referencing established case law, the Tribunal determined that the appellant was eligible for the benefits under section 80 of the Finance Act. As a result, the Tribunal decided to sustain the impugned order and dismissed the department's appeal. The judgment was delivered after a thorough review of the submissions made by the department's representative and the available record, with the respondent not participating in the proceedings.
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