CESTAT upholds waiver of penalties for timely Service Tax payment, dismisses revenue's appeal.

The Appellate Tribunal CESTAT NEW DELHI dismissed the revenue's appeal against an impugned order confirming demand and interest but setting aside penalties due to procedural delays. The Tribunal upheld the waiver of penalties for assessees who complied with paying Service Tax and interest, citing a similar case precedent. The revenue's argument that non-payment of Service Tax warranted penal action was rejected, and the appeal was dismissed with no infirmity found in the impugned order.

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Issues involved: Appeal against impugned order confirming demand and interest but setting aside penalties on grounds of procedural delays and compliance with Service Tax Law.

Summary:
The Appellate Tribunal CESTAT NEW DELHI heard an appeal filed by the revenue against an impugned order where penalties were set aside based on procedural delays. The Commissioner (Appeals) confirmed the demand and interest but waived penalties u/s 76, 75A & 79 due to the introduction of a Voluntary Disclosure Scheme for new assessees. The revenue contended that non-payment of Service Tax made the appellant liable for penal action. However, the Tribunal, considering a similar case in CCE v. Bhojpur Club, upheld the waiver of penalties for assessees who complied with paying Service Tax and interest. The Tribunal found no infirmity in the impugned order and dismissed the appeal.

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