2009 (12) TMI 402 - AT - Service Tax

Penalty- The assessees had rendered Technical Testing and Analysis Services and had not discharged service tax liability during the period July 2003 to June 2006 although the levy came into force with effect from 1-7-2003. As the assessee was not aware. Held that- it is a fit case for the waiver of the penalty.

Summary

The Appellate Tribunal CESTAT, Chennai reduced penalties imposed by the adjudicating authority under Section 76 and 78. The assessee appealed against the penalty imposition, and the Revenue appealed against the reduction. The assessees had not paid service tax liability from July 2003 to June 2006 but later paid with interest. The Tribunal granted relief from penal action under Section 80 of the Finance Act, 1994, setting aside the penalties. The Revenue's appeal was dismissed.