Appellant's Challenge on Service Tax Penalty Upheld

The appellant contested penalty under Section 76 of the Finance Act, 1994 for not paying service tax on Renting of Immovable Property services. The levy of service tax was deemed ultra vires. The appellant paid the tax with interest before the show cause notice. Penalty under Section 76 was not imposed, and the appeal was disposed of without penalty.

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The appellant contested penalty under Section 76 of the Finance Act, 1994 for not paying service tax on Renting of Immovable Property services during 01.06.2007 to 31.03.2008. The levy of service tax was held ultra vires and the matter is pending in the Hon'ble Apex Court. The appellant paid service tax with interest before the show cause notice. Penalty under Section 76 of the Finance Act, 1994 was not imposed and set aside. The appeal was disposed of accordingly.

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