2009 (7) TMI 153 - AT - Service Tax

CESTAT Chennai: Penalty Waived for Courier Services due to Timely Tax Payment

The Appellate Tribunal CESTAT, Chennai waived the penalty of Rs. 3,72,009 imposed on 'Courier Services' for belated payment of service tax, as the tax ... Application for waiver of pre-deposit of penalty - penalty imposed for belated payment of service tax by applicants on “Courier Services” - The period of dispute is Oct.’05 to Mar.’06 - The assessee herein has paid the tax amount prior to the issue of the show-cause notice and interest within a month after the issue of the show-cause notice. - applicants have made out a strong prima facie case for total waiver in the light of Circular No. 137/167/2006-Cx.4, dated 3-10-2007 clarifying that entire proceedings under the Finance Act, 1994 get concluded when the service tax and interest levied within the normal period of limitation are paid within a period of one month from the date of issue of show-cause notice. - Therefore, I waive the pre-deposit of penalty and stay recovery The Appellate Tribunal CESTAT, Chennai heard an application for waiver of pre-deposit of penalty of Rs. 3,72,009 imposed on 'Courier Services' for belated payment of service tax. The Tribunal waived the penalty as the tax amount was paid before the show-cause notice and interest was paid within a month after the notice, in accordance with Circular No. 137/167/2006-Cx.4. Recovery of penalty was stayed pending appeal.