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2009 (11) TMI 227 - AT - Service TaxPenalty- the assessee got itself registered with the Central Excise Department as a provider of service under the category of ‘cable operator services’ in the year 2002. it also paid service tax for the period ending on 31.12.2003. However, it stopped paying service tax and filing ST-3 return from January, 2004 to December, 2005. The adjudicating authority therefore make the demand of service tax and penalty. the Commissioner (Appeals) vacated the penalty as the assessee discharge the liability before the issuance of SCN. Held that- on reading of the provisions of section 76, it is obvious that penalty is imposable for the delay in payment of service tax towards the services rendered by an assessee. This penal liability is not linked to the timing of the timing of SCN for demand of tax not paid. In view of the statutory provisions, the assessee was liable to penalty under section 76. The lower appellate authority erred in vacating the penalty. in the circumstances the penalty restored.
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