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2012 (10) TMI 307 - HC - Service TaxPayment of 25% of the tax amount towards the penalty - Held that:- The service tax itself was concededly paid on 3.3.2009, i.e., before the show cause notice which was issued on 12.3.2009. The Order in Original confirmed the said demand for Rs. 3,54,37,986/- which had been so deposited. Having regard to these, prima facie, the provisions of the first proviso to Section-78 was attracted and the Commissioner could not have demanded any amount in excess of 1/4th of the service tax liability, as penalty. The directions to pay Rs. 3,54,37,986/- as penalty is therefore incorrect. Since the primary liability to pay service tax was discharged even before the issuance of show cause notice this is an appropriate case where the amount of pre-deposit should be reduced, in the interest of justice. This Court had directed payment of Rs. 25 Lakhs treated as satisfying the requirement of pre-deposit for the purpose of hearing the appeal.
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