2011 (5) TMI 93 - AT - Service Tax

Penalty Waived for Appellant Company Due to Managing Director's Family Circumstances

The Appellate Tribunal CESTAT, Chennai upheld the decision to set aside the penalty imposed on the appellant company due to the Managing Director's ... Waiver of penalty - Benefit u/s 73 (3) - The Managing Director of the appellant company was attending to his seriously ill mother, who was undergoing treatment for cancer, and that the entire amount of tax with interest has been paid by the appellants before the issue of show cause notice - Thus, it is concluded that the appellants had no intention to evade payment of duty - Hence, the impugned order is upheld and the department s appeal is dismissed. The Appellate Tribunal CESTAT, Chennai upheld the lower appellate authority's decision to set aside the penalty imposed on the appellant company. The penalty was waived due to the Managing Director's circumstances of attending to his seriously ill mother undergoing cancer treatment, and the payment of tax with interest before the show cause notice was issued. The department's appeal was dismissed.