2015 (11) TMI 1557 - AT - Service Tax

CESTAT upholds waiver of penalty under Finance Act citing reasonable cause

The Appellate Tribunal CESTAT NEW DELHI upheld the decision of the Commissioner (Appeals) to waive the penalty imposed on the respondent under Section 77 ... Imposition of penalty - Sub-section (2) of Section 80 of the Finance Act - tax alongwith interest was not deposited by the respondent within 6 months from the date of accent of the precedent to the Finance Bill, 2012 - Held that: - the Commissioner (Appeals) has discussed in his order that there is reasonable cause for non-payment of service tax within the stipulated time and extended the benefit of non-imposition of penalty under section 80 of the Act. Hence, penalty not to be imposed - decided against Revenue. The Appellate Tribunal CESTAT NEW DELHI upheld the decision of the Commissioner (Appeals) to waive the penalty imposed on the respondent under Section 77 and 78 of the Finance Act, citing Section 80 of the Act due to reasonable cause for non-payment of service tax within the stipulated time. The Revenue's appeal was dismissed.