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2016 (6) TMI 578 - AT - Service TaxImposition of equal amount of penalty - Section 78 of the Finance Act, 1994 - Site Formation and Clearance Service - Allegation of suppression - Held that:- the appellant discharged the service tax liability and interest prior to issuance of the show cause notice. The interest on delayed payment of tax was paid on 10-11-2010. The show cause notice is dated 12-11-2010. The appellant has further paid 25% of the penalty and presently does not challenge this amount of penalty paid by appellant. Under Sub-section(3) of Section 73 no show cause notice can be issued if service tax along with interest is paid by the assessee. Therefore, there are no circumstances to impose equal amount of penalty under Section 78 of the Finance Act, 1994. Hence I hold that equal amount of penalty imposed under Section 78 of the Act is to be set aside without disturbing the confirmation of demand of service tax, the interest thereon and as per the concession by appellant the 25% of reduced penalty already paid by appellant. The impugned order is modified to the above extent. - Decided partly in favour of appellant
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