9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (11) TMI 921 - AT - Service TaxReduction of penalty u/s 78 of FA - non-payment of service tax - GTA Service - works contract service - Held that - As per proviso to Section 78(1) of the Act, if the details relating to transactions are recorded in the specified record for the period beginning with the 8th April, 2011 upto the date on which the Finance Bill, 2015 receives the assent of the Hon ble President of India, the penalty shall be 50% of the service tax so determined - There is no dispute with regard to the fact that the appellant has not recorded the said transactions in their specified records. Penalty is to be reduced to 50% of the service tax - appeal allowed.
Issues Involved:
Reduction of penalty under Section 78 of the Finance Act, 1994. Analysis: The appellant appealed against the imposition of a penalty under Section 78 of the Finance Act, 1994, for not paying service tax on taxable services of GTA and supply of tangible goods services, as well as for not registering with the Department. The appellant also did not pay service tax on work contract services for a specific period. The demand was confirmed, including interest and penalty equivalent to the amount of service tax under Section 78 of the Finance Act, 1994. The provisions of Section 78 state that if service tax has not been levied or paid due to fraud, collusion, wilful mis-statement, suppression of facts, or contravention of any provisions with the intent to evade payment, a penalty equal to 100% of the service tax is applicable. However, a proviso states that if transaction details are recorded in specified records for a specific period, the penalty can be reduced to 50% of the service tax determined. In this case, it was found that the appellant had not recorded the transactions in their specified records. Based on a previous decision of the Tribunal, it was held that since the appellant did not record the transactions in specified records, the penalty should be reduced to 50% of the service tax. Therefore, the penalty was reduced to 50% of the service tax confirmed in the impugned order, and the appeal was disposed of accordingly.
|
