2007 (7) TMI 96 - AT - Service Tax

Stay application granted under amnesty scheme, penalty waived, appeal allowed for disposal.

The stay application was allowed by the Tribunal as the case fell under an amnesty scheme, resulting in the waiver of penalties for those who settled ... Amnesty scheme - waiver of penalty upon deposit of tax and interest - penalty under service tax - appropriation of payment - stay of recoveryAmnesty scheme - waiver of penalty upon deposit of tax and interest - penalty under service tax - Applicability of the Ministry of Finance amnesty scheme to set aside the penalty imposed for failure to discharge service tax for the period April 99 to April 2003 where the assessee deposited tax and interest before 30-10-2004. - HELD THAT: - The Tribunal found that the appellant had obtained service tax registration but had not discharged the service tax liability for the period April 99 to April 2003 and that the appellant deposited the entire service tax liability and interest on 4-10-2004. The adjudicating authority had appropriated that amount and imposed a penalty, which was sustained on appeal. The Tribunal examined the Ministry of Finance amnesty scheme communicated by letter No. 137/39/2004-CX dated 28-9-2004, under which penal actions were waived for assessees who deposited the entire service tax liability and interest before 30-10-2004. Applying that scheme, and following the Tribunal's earlier decision in the case of Bharat Security Services and Workers Cont. , the Tribunal held that the appellant fell within the amnesty and that the penalty could not be sustained where the tax and interest had been deposited within the prescribed period. The Tribunal therefore set aside the impugned penalty order and allowed the appeal with consequential relief, noting that the stay application was allowed in view of coverage by the amnesty scheme. [Paras 1, 3]The penalty imposed is set aside as the amnesty scheme applies because the tax and interest were deposited before 30-10-2004; the appeal is allowed and the earlier stay application is granted.Final Conclusion: The appeal is allowed; the penalty is set aside under the Ministry of Finance amnesty scheme as the assessee deposited the tax and interest before 30-10-2004, and the stay application is allowed. The stay application was allowed as the case was covered by an amnesty scheme, waiving penalties for those who paid their service tax liability and interest before a specified date. The Tribunal set aside the penalty imposed on the appellants and allowed the appeal for disposal.