2011 (8) TMI 145 - AT - Service Tax

Penalty u/s 78 - there was suppression of taxable value apart from non-payment of tax in time which has been subsequently paid along with interest after detection by the department - appellants are therefore allowed to pay 25% of the penalty imposed under Section 78 of the Finance Act 1994 within 15 days from today. In the event of non-payment of the reduced penalty by the due date full amount will be payable by the appellants - The appeal is thus partly allowed

Summary

The Appellate Tribunal CESTAT, Chennai allowed the appellants to pay 25% of the penalty imposed under Section 78 of the Finance Act, 1994 within 15 days, citing a decision of the Delhi High Court. The penalty was upheld due to suppression of taxable value and non-payment of tax. If the reduced penalty is not paid on time, the full amount becomes payable. The appeal was partly allowed.