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2014 (9) TMI 977 - AT - Service TaxPenalty u/s 76, 77 and 78 - Site Formation and Clearance, Excavation and Earth Moving and Demolition Services - Held that:- As the appellant has admitted the Service Tax liability and the same is not in dispute, therefore, we are considering only the issue of penalties imposed on the appellant under Sections 76, 77 and 78 of the Finance Act, 1994. We find the C.B.E. & C. vide Circular dated 27-7-2005 clearly clarifies that the activity undertaken by the appellant falls under Site Formation and Clearance, Excavation and Earth Moving and Demolition Services. The appellant has also not approached the department for clarification whether their activity falls under taxable service or not. In the circumstance, we hold that the appellant are not entitled for the benefit of Section 80 of the Finance Act, 1994. As the appellant has paid the entire amount of Service Tax along with interest, therefore, penalty is reduced to 25% of the Service Tax confirmed under Section 78 of the Finance Act against them. The appellant is directed to pay the reduced amount of penalty within a period of 30 days of the communication of this order failing which the appellant shall be liable to pay 100% of the Service Tax payable. Penalty under Section 77 is confirmed. - Decided against assessee.
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