Section 80 penalty waiver applied where service tax and interest were paid after being pointed out.

Penalties for non-payment of service tax on GTA services were held to be fully waivable under section 80 of the Finance Act, 1994 because the assessee paid the tax and interest when pointed out and the record showed ignorance of the liability. The lower appellate authority had already treated the case as one fitting section 80 and had only partly reduced the penalties, but the circumstances justified complete relief. Penalties imposed under sections 76, 77 and 78 were therefore waived.

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Issues: Whether the penalties imposed for non-payment of service tax on GTA services were liable to be waived under section 80 of the Finance Act, 1994.

Analysis: The appellants paid the service tax and interest on being pointed out, and the facts indicated ignorance of the liability. The lower appellate authority had already treated the matter as one covered by section 80 and had reduced the penalties only partly. In view of the circumstances, full waiver of penalty was warranted.

Conclusion: The penalties under sections 76, 77 and 78 of the Finance Act, 1994 were waived.

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