2006 (7) TMI 34 - AT - Service Tax

Service Tax Enhancement of penalty No valid reason to uphold the order of reviewing Commissioner which enhanced 100% penalty

Summary

The Appellate Tribunal CESTAT, Mumbai allowed the appeal of the assessee against the order of the Commissioner of Central Excise & Customs, Nashik. The penalty imposed under section 76 of the Finance Act, 1994 was found to be too low and was enhanced by the Reviewing Commissioner. However, the Tribunal, relying on a Supreme Court decision, found no valid reason to uphold the enhanced penalty and allowed the appeal.