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2013 (3) TMI 202 - AT - Service TaxWaiver of penalties seeked u/s 80 of Finance Act, 1994 - Non discharge on service tax liability - Held that:- No doubt, indirect taxes permit shifting of incidence but does not immune a tax payer from tax liability in the event of non-recovery from consumers. No legal opinion was placed before the authorities below to prove bonafide. Nor such opinion or correspondence made with department to show innocence as placed. Therefore, it is not a fit case to be governed by Section 80 of Finance Act, 1994. As levy of penalty under Section 76 & 78 simultaneously is unwarranted. Therefore, there shall be waiver of penalty imposed under Section 76 while penalty under section 78 is confirmed. Since there was continuation of economic activity providing taxable service, penalty under Section 77 is also confirmed - as the assessee has come forward at a later stage to comply with the law, to reduce the litigation penalty under Section 78 reduced to 25% of Service Tax liability. This concession in penalty shall be permissible only if the Respondent pays 25% of service tax liability towards penalty under that section within 30 days of receipt of this order - allow Revenue's appeal partly.
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