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2013 (10) TMI 1273 - AT - Service TaxPenalty - option to pay reduced penalty of 25% - Service of consulting engineer - Service tax collected from clients but not deposited to the exchequer - ST-3 Returns not filed - Held that:- appellant had paid tax amount along with interest before issue of show cause notice, the adjudicating authority should have brought to the notice of the appellant the option available for payment of 25% of tax demand as penalty under section 78 of Finance Act 1994 for final closure of the matter. Since this was not done by the lower authorities I follow the decision of the Hon’ble Delhi High Court in the case of KP Pouches (P) Ltd. Vs UOI-[2008 (1) TMI 296 - HIGH COURT OF DELHI] - option given to the assessee to deposit 25% of penalty within 30 days from the date of order to avail the benefit of reduced penalty u/s 78. - Decided in favor of assessee partly.
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