Tribunal upholds penalty for non-payment of service tax despite Voluntary Disclosure Scheme argument.

The Tribunal upheld the penalty of Rs. 15,000 imposed on the appellant for non-payment of service tax as a cable operator, despite the appellant's argument that the Voluntary Disclosure Scheme should apply. The Commissioner (Appeals) had already reduced the penalty from the original tax amount to Rs. 15,000, which the Tribunal deemed as a lenient view. The Tribunal concluded that the Voluntary Disclosure Scheme did not exempt the appellant from the penalty, ultimately affirming the reduced penalty amount.

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Issues:
- Imposition of penalty under service tax laws
- Applicability of Voluntary Disclosure Scheme
- Reduction of penalty by Commissioner (Appeals)

Imposition of Penalty under Service Tax Laws:
The case involved the imposition of a penalty of Rs. 15,000 on the appellant for non-payment of service tax as a cable operator. The appellant had deposited the entire tax amount after receiving a show cause notice. The Assistant Commissioner of Central Excise confirmed the tax liability and imposed a penalty equal to the tax amount. Subsequently, the Commissioner (Appeals) reduced the penalty to Rs. 15,000. The appellant argued that the Voluntary Disclosure Scheme, announced by the department, applied to their case as they deposited the tax within the scheme's stipulated period. However, the Tribunal held that the scheme was not applicable in this case as the tax was deposited after the show cause notice. The Tribunal upheld the penalty imposed by the lower authorities, noting that the Commissioner (Appeals) had already taken a lenient view in reducing the penalty.

Applicability of Voluntary Disclosure Scheme:
The appellant relied on the Voluntary Disclosure Scheme announced by the department, claiming that the penalty should not be imposed as they had voluntarily deposited the tax within the scheme's timeframe. The Tribunal, after considering the submissions, found that the scheme could not be applied retrospectively in this case since the tax was paid after the issuance of the show cause notice. Therefore, the Tribunal concluded that the Voluntary Disclosure Scheme did not exempt the appellant from the penalty imposed for non-payment of service tax.

Reduction of Penalty by Commissioner (Appeals):
The Commissioner (Appeals) had reduced the penalty from the originally imposed amount to Rs. 15,000. The appellant argued that no penalty should be levied due to their compliance with the Voluntary Disclosure Scheme. On the other hand, the Departmental Representative supported the findings of the Commissioner (Appeals) and urged the Tribunal to reject the appeal. The Tribunal, after examining the facts and circumstances, upheld the decision of the Commissioner (Appeals) to reduce the penalty, considering it a lenient view. Consequently, the Tribunal rejected the appellant's appeal, affirming the reduced penalty amount of Rs. 15,000.

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