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2016 (1) TMI 923 - AT - Service TaxLevy of penalty u/s 76 and 78 - waiver u/s 80 - delay in payment of service tax - earlier have not filed ST-3 returns and have not remitted the service tax collected from the customers to the Govt. exchequer - only after the investigation was started the Respondents started paying the service tax though belatedly. - Held that:- There is enough reason to view the non-payment of service tax on due dates by the Respondents leniently. It is observed that the Respondents have paid almost the entire amount of service tax due before issuance of show cause notice. We also find that the legislature in its wisdom has also amended the provisions of Section 78, albeit from 01.4.2011, that the penalty under Section 78 may be reduced to 50% when true and complete details of the transactions are available in the specified records. In view of the same, we hold that the equivalent penalty imposed on the Respondents under Section 78 of the Finance Act, 1994, is to be reduced to 50% of the same in respect of the first show cause notice dated 30.08.2011, provided that the Respondents pay the said amount within thirty days from the receipt of this order. - Decided partly in favor of assessee.
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