2010 (1) TMI 205 - AT - Service Tax

Penalty- The assessees only challenge the imposition of penalty under the provisions of sections 76 77 and 78 of the Finance Act 1994 on the ground that non-payment of service tax during the relevant period was entirely due to ignorance on the part of the assessees to pay service tax on the freight charges incurred. Held that- I set aside the penalty under sections 76 and 78 by granting relief under section 80 of the Finance Act 1994. However I uphold the penalty of Rs. 1, 000 under section 77 as the ingredient of suppression of non-submission of returns is not relevant under this section. The appeal is thus allowed in part.

Summary

The Appellate Tribunal CESTAT, Chennai ruled on the imposition of penalties under sections 76, 77, and 78 of the Finance Act, 1994. The penalty was set aside under sections 76 and 78 due to ignorance of liability, but a penalty of Rs. 1,000 under section 77 was upheld for non-submission of returns. The appeal was allowed in part. (Case citation: 2010 (1) TMI 205 - CESTAT, CHENNAI)