Appellant succeeds in penalty appeal but upholds late fee for late ST-3 filing.

The Tribunal allowed the appellant's appeal to set aside the penalty imposed but upheld the late fee imposition for late filing of ST-3 returns under Service Tax Rules, 1994. The appellant failed to provide a basis for waiving the late fee, leading to its confirmation by the lower authorities. The Tribunal found no mala fide intent in the appellant's actions, leading to the setting aside of the penalty imposed under Section 77 of the Finance Act, 1994. The decision resulted in partial success for the appellant, with relief granted in terms of penalty but not late fee imposition.

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Issues involved: Stay application and appeal regarding late fee and penalty imposition for late filing of ST-3 returns under Service Tax Rules, 1994.

Late Fee Imposition:
The appellant filed a stay application and appeal challenging the order upholding the recovery of late fee for late filing of ST-3 returns. The Adjudicating authority ordered a late fee of Rs. 6000 under Rules 7 & 7C of the Service Tax Rules, 1994, and Section 70 of the Finance Act, 1994. Despite the absence of the appellant during the hearing, the Tribunal considered the issue. The Tribunal upheld the imposition of the late fee, citing the legal provisions that mandate its payment. The appellant failed to provide any basis for waiving the late fee, leading to the confirmation of the late fee by the lower authorities.

Penalty Imposition:
Regarding the penalty imposed on the appellant, as a government department, the post office was deemed to have no mala fide intent in fulfilling its duty liability. The Tribunal noted that the entire service tax liability was reflected in the returns, and compliance with the late fee provision was made. Consequently, the penalty imposed under Section 77 of the Finance Act, 1994, was set aside. The Tribunal emphasized that the penalty could not be justified in the absence of any malicious intent or negligence on the part of the appellant.

Decision:
The Tribunal allowed the appeal filed by the appellant only to the extent of setting aside the penalty imposed, while upholding the late fee imposition for late filing of ST-3 returns. The judgment was pronounced in open court, concluding the matter with a partial success for the appellant in terms of penalty relief.

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