Penalty for Non-Payment of Service Tax 1997-98: Appellant Must Pay Interest to Avoid Further Penalties

The Appellate Tribunal CESTAT Ahmedabad held that penalty determination for non-payment of service tax for 1997-98 is inconclusive due to legal developments. The appellant is required to pay interest liability and deposit Rs. 43,164 within four weeks to avoid penalty and stay against recovery. Compliance deadline set for 29-8-08.

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The Appellate Tribunal CESTAT Ahmedabad ruled that the penalty imposed for non-payment of service tax for the period 1997-98 cannot be conclusively decided due to legal developments. However, interest liability exists, and the appellant must deposit Rs. 43,164 within four weeks to waive the penalty and stay against recovery. Compliance to be reported on 29-8-08.

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