2024 (9) TMI 1594 - AT - Service Tax

Levy of service tax - activity of transmission of electricity, erection of towers, etc. - N/N. 11/2010-S.T. dated 27.02.2010 read with N/N. 45/2010-S.T. dated 20.07.2010 - HELD THAT - As the appellant have already paid the entire amount of Service Tax, along with interest, and 25% of the penalty imposed under Section 78 of the Finance Act, 1994, in these circumstances, the proceedings against the appellants are to be closed. Accordingly, the penalties imposed on the appellant under Section 77 of the Finance Act, 1994 and the co-appellant under Section 78(1) of the Finance Act, 1994 are set aside. The appeals are allowed.

Summary

The appeal was filed regarding penalties imposed on M/s. A.K. Das Associates Limited and Shri Amiyakanta Das under the Finance Act, 1994. The appellants were engaged in providing construction and installation services. The services were initially exempt from Service Tax but became taxable after a certain date. An investigation revealed non-payment of appropriate Service Tax, leading to the issuance of a Show Cause Notice. The appellants paid the outstanding amount and penalties. The Tribunal set aside the penalties imposed under Sections 77 and 78(1) of the Finance Act, 1994 as the appellants had already paid the entire Service Tax, interest, and part of the penalty. The appeals were allowed.