2008 (10) TMI 129 - AT - Service Tax

Enhancement of penalty by Commissioner in O-I-R - assessee gave sufficient cause for failure to pay service tax within time i.e. shifting of office premises and personal difficulty - Section 80 provides that no penalty shall be imposable on the assessee for any failure referred to in the said provisions if the assessee proves that there was reasonable cause for the said failure since interest and penalty originally imposed upon the applicant stands paid enhancement of penalty is set aside

Summary

The Appellate Tribunal CESTAT, Mumbai set aside the enhancement of penalty in a case where the appellant proved reasonable cause for failure to pay service tax on time due to office relocation and personal difficulty. The decision was based on the provision of section 80 of the Finance Act, 1994. The appeal was allowed, and the penalty was reduced from Rs. 1,70,856 to Rs. 50,000.