2009 (11) TMI 163 - AT - Service Tax

Penalty- Simultaneously- The Commissioner imposed penalty under section 76 as well as under section 78 of the Finance Act 1994 for delay in payment of service tax. Held that- accept the contention of the assessees that penalties under sections 76 are 78 are mutually exclusive and therefore set aside penalty of imposed under section 78 while upholding the penalty imposed under section 76.

Summary

The Appellate Tribunal CESTAT, Chennai upheld penalty under section 76 but set aside penalty under section 78 for delay in service tax payment. The appellants did not dispute the tax liability. The penalty of Rs. 39,463 under section 78 was revoked.