2010 (7) TMI 403 - AT - Service Tax

Penalty - excess service tax paid - service tax was paid in excess during the month which has been adjusted towards the service tax liability for the subsequent months service tax paid tax in advance - As such they cannot be penalized under Section 76 of the Finance Act 1994 which applies to cases of failure to pay service tax. Hence the penalty imposed under Section 76 is set aside

Summary

The Appellate Tribunal CESTAT, Chennai ruled that penalty under Section 76 of the Finance Act, 1994 was set aside as the service tax was paid in advance, not delayed. The penalty of Rs. 1,000 under Section 77 was confirmed as the appellant did not press the appeal.