Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2019 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (8) TMI 1376 - AT - Service TaxImposition of penalty u/s 78 of FA - appellant had paid service tax only on invoices raised for reimbursement of salaries from the service receivers/clients but not on the incentives, rewards and reimbursement (RR) receipts from its clients - contravention of provisions of 67(3)1 of the Finance Act 1994 - HELD THAT:- There is nothing available in the show cause about the intention of the appellant to evade payment of tax except that error was pointed out in the EA-2000 audit which appellant accepted to be an error and made its best efforts to rectify the same as in both Order-In-Appeal and Order-In-Original, it has been noted by the authorities that they had checked the payment and found them accounted in the assessee’s account on ACES that has established that the payment details are genuine. Therefore, there if no cogent reason available to impose penalty under section 78 of FA when under section 76 penalty of 10% was imposed and appellant had abided the same by paying the penalty. The transitory provision as contained under section 78(B)(1)(b), provision of section 76 or 78 shall be applicable to the cases where show cause notice was issued but no order has been passed under sub section of 2 of section 73 as section 76 deals with non-payment of tax other than the reason of fraud or collusion or wilful misstatement or suppression of fact or contravention of any other provision of the act or rules while section 78 covers any of these grounds. Penalty set aside - Appeal allowed.
|