2018 (8) TMI 1233 - HC - Service Tax

High Court overturns penalty on partnership firm for service tax delay, stresses decision consistency

M/s. Archi Technics Versus The Commissioner of Central Excise And Service Tax, Mangalore

M/s. Archi Technics Versus The Commissioner of Central Excise And Service Tax, Mangalore - 2018 (16) G.S.T.L. 358 (Kar.) Issues:Appeal against penalty for failure to deposit service tax on time.Analysis:The case involved an appeal by a partnership firm, Assessee-M/s.Archi Technics, against a penalty imposed for not timely depositing service tax on professional services provided during a specific period. The learned CESTAT had dismissed the appeal, upholding the penalty. The Tribunal cited a previous case to support its decision, stating that reasons like the ill-health of a family member cannot justify waiving the penalty under Section 80 of the Finance Act, 1994.The appellant's counsel argued that a different Division Bench decision had waived a similar penalty due to family reasons, but this was not considered in the present case. The High Court noted that the Tribunal did not provide sufficient reasoning for rejecting the appellant's claims, especially since a similar case involving family illness had resulted in the penalty being set aside previously. The High Court emphasized the importance of consistency in decision-making and directed the Tribunal to reconsider the matter based on the specific circumstances and details of the case.In conclusion, the High Court allowed the appeal, setting aside the Tribunal's order and remitting the case for fresh consideration. The parties were instructed to appear before the Tribunal without further notice. No costs were awarded in the judgment.