2011 (8) TMI 426 - AT - Service Tax

Imposition of penalty - appellants themselves voluntarily approached the departmental authorities and once it was clarified that they are liable to pay service tax the tax along with interest has been promptly paid - As such penalty imposed on the appellants is set aside and the appeal is allowed.

Summary

The Appellate Tribunal CESTAT, Chennai ruled in favor of the appellants in a penalty dispute related to service tax. The penalty was waived as the appellants voluntarily approached authorities and promptly paid the tax and interest. The case fell under Section 73 of the Finance Act, 1994, with no investigation or show-cause notice issued. The appeal was allowed.