2013 (3) TMI 202

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....jit Singh Chabra, Adv. Per: D.N. Panda: We have heard this matter in great length before lunch session and after that. Our anxiety was to find out whether there was a case under Section 80 of Finance Act, 1994 to waive penalties imposed under law. 2. Revenue's submission was that the appellant had defiant attitude to comply with the law. Against this, respondent points out that when the l....

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....grant immunity from penalty, he allowed relief from penalty. 4. Heard both sides and perused the record. 5. So far as the liability of service tax is concerned there was no dispute by the Respondent. That follows interest. This aspect also remained undisputed. Penalty became payable when tax liability was not discharged. Failure to discharge service tax liability dragged the Respondent to pr....

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....irect taxes permit shifting of incidence but does not immune a tax payer from tax liability in the event of non-recovery from consumers. Liability being fastened with the service provider upon incidence of tax, it was required to be seen whether the service provider at any time came forward to ascertain its liability approaching the department or having any legal opinion at its end to believe bona....

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....nalty under Section 77 is also confirmed. 9. When we notice that the Respondent has come forward at a later stage to comply with the law, we do reduce the litigation reducing penalty under Section 78 to 25% of Service Tax liability. This concession in penalty shall be permissible only if the Respondent pays 25% of service tax liability towards penalty under that section within 30 days of receip....