Appellate tribunal allows 25% penalty reduction if paid within 30 days, stresses importance of timely payment.

The appellate tribunal extended the appellant the option to pay a reduced penalty of 25% within 30 days from the order date, highlighting the necessity of granting such a choice when authorities fail to do so. Failure to comply would result in the full penalty amount being applicable. The tribunal emphasized the importance of providing the appellant with this opportunity, considering the timely payment of Service Tax and interest before the adjudicating order.

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Issues:
Whether the appellant is liable to pay the penalty under section 78 of the Finance Act, 1994.

Analysis:
The appellant, a professional player associated with the Indian Premier League (IPL) and other tournaments, received a total consideration but failed to pay the Service Tax due to lack of awareness. Upon initiation of the department's enquiry, the appellant registered for Service Tax, made partial payment, and eventually paid the entire Service Tax along with interest before the adjudicating order. Despite this, the penalty under section 78 was imposed by the Commissioner. The appellate tribunal noted that the appellant was not given the option to deposit 25% of the penalty amount, even though the entire Service Tax with interest was paid before the adjudicating order. It was emphasized that the appellant should have been given the choice to pay the reduced penalty within 30 days from the date of adjudication. The tribunal highlighted the necessity of granting such an option when the authorities fail to provide it. Consequently, the tribunal extended the option to the appellant to deposit the reduced penalty of 25% within 30 days from the date of the order, failing which the full penalty amount would be applicable after the specified period.

In conclusion, the tribunal disposed of the appeal by emphasizing the importance of providing the appellant with the opportunity to pay the reduced penalty within the stipulated timeframe, considering the appellant's timely payment of the Service Tax and interest before the adjudicating order.

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