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2015 (5) TMI 211 - AT - Service TaxPenalty u/s 76 for late deposit of service tax - penalty u/s 77 not submission of ST-3 return - reverse charge mechanism - situation of revenue neutrality - Held that:- Appellant was required to pay service tax under reverse charge mechanism. After that they have paid the service tax in time, same was available to them as Cenvat credit. By not paying the service tax in time, appellant has already suffered interest and have not taken credit of the service tax paid. Therefore it is a situation of revenue neutrality. Penalty under section 76 is dropped. However, I consider that imposition of penalty under section 77 shows the non application of mind by the authorities below. As under section 77 penalty cannot be imposed for non-filing of SRT 3 return. In these circumstances, penalty under section 77 is also, set aside. - Decided in favour of assessee.
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