2002 (7) TMI 1 - AT - Service Tax

CEGAT Mumbai: Appeal of Air Travel Agent partly allowed; Penalty under Section 76 waived.

The Appellate Tribunal CEGAT, Mumbai waived the pre-deposit of penalty and partly allowed the appeal of an 'Air Travel Agent.' Penalty under Section 76 ... Penalty under Section 76 of the Finance Act, 1994 - penalty under Section 77 of the Finance Act, 1994 - requirement to file return in Form ST-3 - speaking order requirement for imposition of penalty - waiver of pre-depositPenalty under Section 76 of the Finance Act, 1994 - speaking order requirement for imposition of penalty - Penalty imposed under Section 76 of the Finance Act, 1994 was set aside for lack of a speaking order - HELD THAT: - The Commissioner (Appeals) accepted that the Assistant Commissioner did not record reasons in a speaking order for imposition of penalty under Section 76. The Appellate Tribunal held that absence of a speaking order vitiates the penalty imposed under Section 76 and accordingly set aside the penalty. The Tribunal rejected the notion that the Assistant Commissioner's omission to give reasons could be ignored and sustained, thereby requiring that penalties under Section 76 be supported by a reasoned order. [Paras 3]Penalty under Section 76 set aside.Penalty under Section 77 of the Finance Act, 1994 - requirement to file return in Form ST-3 - Penalty imposed under Section 77 of the Finance Act, 1994 was upheld for failure to furnish prescribed returns in time - HELD THAT: - The appellants, engaged as air travel agents, failed to file Form ST-3 for the specified quarters within the stipulated period. The Tribunal found the penalty under Section 77 sustainable on the ground of failure to furnish the prescribed returns in due time and therefore upheld the penalty imposed under that provision. [Paras 3]Penalty under Section 77 upheld.Final Conclusion: Pre-deposit of penalty was waived and, on hearing the appeal, the Tribunal set aside the penalty imposed under Section 76 for lack of a speaking order and upheld the penalty imposed under Section 77 for failure to file Form ST-3 for the specified quarters; the appeal is partly allowed. The Appellate Tribunal CEGAT, Mumbai waived the pre-deposit of penalty of Rs. 92,400/- and proceeded to hear the appeal. Penalty of Rs. 87,800/- under Section 76 was set aside, while penalty of Rs. 4,600/- under Section 77 was upheld for late filing of Service Tax Returns by an 'Air Travel Agent'. The appeal was partly allowed.