75th Founding Day Lecture Meeting on “India@2030” Know More

April 2011

(2011) 21 STR 210 (P & H) – CCEx. vs. Haryana Industrial Security Services

By Puloma Dalal, Jayesh Gogri, Chartered Accountants
Reading Time 1 mins
fiogf49gjkf0d
Penalty u/s. 78 has to be equal to the amount of service tax demand and the law does not provide discretion to reduce.

Facts:
The assessee a security agency, paid service tax on the service charges received from the customers instead of gross amount charged for the period from 16/10/1998 to 30/09/1999. The assessee did not dispute the revenue’s contention that the minimum penalty prescribed under section 78 is equal to the amount of service tax. Based on other facts, the lower Appellate Authorities held that the assessee had suppressed facts and therefore, liable to penalty. However the Tribunal reduced the penalty amount to 1.5 lakh from 6.5 lakh.

Held:
The penalty equal to the amount of service tax was minimum and Tribunal’s order reducing penalty was set aside.

Download PDF

You May Also Like

CENVAT Credit – Refund of service tax paid on input services – Export of software – Non taxable at the relevant point in time – Exporter entitled to refund of such unutilised CENVAT Credit on furnishing requisite documents – Registration is not a pre-requisite to claim CENVAT Credit in absence of any such statutory provisions.

(2011) 21 STR 224 (Kar) – CCEx., Mangalore vs. K. Vijaya C. Rai