Revenue's appeal dismissed, penalty reduced for service tax delay, minimal revenue effect noted.

The Allahabad HC dismissed the revenue's appeal against the reduction of penalty on State Bank of India for service tax delay. Penalty reduced from Rs. 11,179 to Rs. 5,000 upheld by Tribunal. Court noted minimal revenue effect of Rs. 600 and possibility of penalty waiver under Section 80 of Finance Act.

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The Allahabad High Court dismissed the appeal by the revenue against the reduction of penalty imposed on the State Bank of India for delay in depositing service tax. The penalty was reduced from Rs. 11,179 to Rs. 5,000, and the Tribunal's decision was upheld. The Court cited that the revenue effect was only Rs. 600 and noted that under Section 80 of the Finance Act, the penalty could be waived for reasonable cause.

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