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

July 2016

2016 (42) STR 401 (S.C) Commissioner of Service Tax, Mumbai vs. Lark Chemicals P. Ltd.

By Puloma Dalal, Jayesh Gogri, Mandar Telang; Chartered Accountants
Reading Time 1 mins
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I. Supreme Court

Section 80 of the Finance Act, 1994 envisages a complete waiver of penalty once reasonable cause of failure is established and the same cannot be applied to reduce partially minimum penalties prescribed u/s. 76 and 78 of Finance Act, 1994

Held
On following the judgement of Union of India and Others vs. Dharamendra Textile Processors and Others’ 2008 (231) ELT 3 (SC), it has been held that penalties imposed under section 76 and section 78 cannot be reduced u/s. 80 of Finance Act, 1994.

(Note: section 80 has been omitted with effect from 14/05/2015. The judgment may be relevant to the period prior to deletion of section 80).

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