Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2020 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (2) TMI 907 - AT - Service TaxQuantum of penalty - According to the Adjudicating Authority it is 15% of the Service tax amount whereas as per the first appellate authority it has to be 25% - service tax alongwith the interest paid on being pointed out - HELD THAT:- The appellants have all along admitted the tax liability and paid the same with the interest, wherever there is a delay. For penalty Section 78 ibid has been invoked by the Revenue. 2nd proviso to Section 78 ibid mentioned that if the assessee pays the service tax within thirty days of the receipt of order of the Central Excise Officer determining the amount of service tax u/s. 73(2), the penalty shall be twenty five percent of the service tax so demanded. The said proviso prescribing concession in penalty to the extent of 25% of duty demanded subject to payment of all dues within 30 days of the order was introduced with effect from 14.5.2003. In view of the Corrigendum issued by the Adjudicating Authority, failure of Appellant to pay penalty amount within 30 days of adjudication order cannot be held against the Appellant. The learned Commissioner in the impugned order did not extend this option to the Appellants although he ought to have given this option. May be because of recording the wrong facts in the impugned order that the Order-in- Original is dated 26.2.2016 [whereas the same is dated 15.7.2016] and the penalty of 10% was paid on 30.3.2016 and another 5% on 11.8.2016 by the Appellant. But the fact of the matter is that the show cause notice was issued on 26.2.2016 and not the Adjudication Order/Order-in-Original. In order to meet the ends of justice, the impugned order needs to be modified and it will be proper to give option to the Appellant to deposit the remaining amount of penalty in order to make it twenty five percent of the service tax amount within thirty days of the communication of this order - Appeal disposed off.
|