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2015 (7) TMI 1043 - AT - Service TaxPenalties under Section 76, 77 & 78 - entire service tax along with interest and 25% penalty was paid by the appellant before the issue of Show Cause Notice - Held that:- It is a case of the appellant that penalties in excess of 25% penalty paid under Section 78 of the Finance Act, 1944 are not imposable, when the same has been paid before the issue of Show Cause Notice alongwith duty and interest. It is observed that as per Para 4 of O.I.A Dated 28.02.2013, passed by the first appellate authority, the entire amount of service tax alongwith interest and penalty of 25% was paid by the appellant during investigation. Under the provisions of Finance Act, 1944 when the entire amount of service tax alongwith interest and 25% penalty is paid before the issue of Show Cause Notice then there is no need to issue a Show Cause Notice. This means that no other penalty in excess of 25% penalty paid before issue of Show Cause Notice is imposable under Finance Act, 1944. In view of the above observations penalties imposed under Section 76, 77 and in excess of 25% under Section 78 of the Finance Act, 1944 are required to be set-aside and appeal filed by the appellant is required to be allowed to that extent. - Decided partly in favour of assessee.
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