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2016 (1) TMI 668 - AT - Service TaxPenalty imposed under Section 78, and also under Section 76 and 70 - service tax was paid before issuance of SCN - Held that:- Considering that the appellant is a proprietorship concern and the services were rendered to a Private Limited Company in organised sector and the services were duly recorded in the books of accounts, and also considering the financial difficulties of the proprietorship concern and the fact that they have paid the amount of ₹ 7,43,141/- before issuance of show cause notice, we consider that imposition of penalties under Section 76 and Section 70 are not warranted in the present case, especially so since equivalent penalty has been imposed under Section 78 of the Finance Act, 1994. We find that the original adjudicating had already offered the appellant the option to pay 25% of the equivalent penalty imposed under Section 78, subject to the conditions prescribed under the provisions of Section 78 of the Finance Act, 1994. Therefore, we uphold the impugned order-in-original with regard to imposition of penalty under Section 78. However, we set-aside the penalties imposed under Sections 76 and 70 of the Finance Act, 1994. - Decided partly in favour of assessee.
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