Karnataka HC Upholds Tribunal Decision on Service Tax Penalties

The Karnataka HC dismissed the Revenue's appeal against the Tribunal's order setting aside penalties for non-payment of service tax. The assessee paid tax and interest before the show cause notice, as permitted by law. The Court upheld the Tribunal's decision, ruling in favor of the assessee.

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The Karnataka High Court dismissed the appeal by the Revenue against the Tribunal's order setting aside penalties imposed under Section 76 of the Finance Act, 1994 for non-payment of service tax on due dates. The assessee had paid the tax and interest before the show cause notice was issued, as allowed under Section 73(3) of the Act. The Court found no legal infirmity in the Tribunal's decision and ruled in favor of the assessee.

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