Tribunal remands case, waives penalties under Section 80(2) Finance Act.

The Tribunal remanded the case to verify the payment of &8377; 52,932, finding the appellant had paid a substantial portion of the service tax liability. Penalties were waived under Section 80(2) of the Finance Act, 1994, as the appellant had paid the tax within six months. The order was modified to set aside penalties and remand for re-quantification of the demand related to the &8377; 52,932 payment. The appeal was partly allowed and partly remanded with consequential reliefs.

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Issues:
1. Whether the appellant properly discharged service tax on the entire income of rent.
2. Whether penalties imposed on the appellant are justified.
3. Whether penalties can be waived under Section 80(2) of the Finance Act, 1994.

Analysis:
1. The appellant, engaged in Renting of Immovable Property Services, was issued a Show Cause Notice for not discharging service tax on the entire income of rent. The Original Authority confirmed the demand, interest, and penalties. The Commissioner (Appeals) modified the order, upholding a demand of &8377; 2,91,167 and setting aside penalties for service tax paid before 28.05.2012. The appellant appealed to the Tribunal, arguing that they had paid the entire service tax liability, including &8377; 52,932, which was not considered by the authorities. The Tribunal remanded the matter to verify the payment of &8377; 52,932.

2. The appellant contended that penalties should be waived under Section 80(2) of the Finance Act, 1994, as they paid the service tax within six months and submitted challan copies. The respondent argued that penalties were justified as the appellant did not provide proof of payment of &8377; 52,932. The Tribunal found that the appellant had discharged a substantial portion of the service tax liability and invoked Section 80 to set aside all penalties imposed.

3. Considering the interpretational issue regarding the levy of service tax on Renting of Immovable Property and the appellant's payment of a significant portion of the liability, the Tribunal deemed it appropriate to waive the penalties entirely. The impugned order was modified to set aside the penalties and remand the matter for re-quantification of the service tax demand related to the &8377; 52,932 payment. The appeal was partly allowed and partly remanded with consequential reliefs as per law.

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