No service tax section 78 penalty in revenue neutral situation

Aswani Industries Pvt Ltd Vs C.C.E. & S.T. (CESTAT Ahmedabad)

CESTAT find that since there is no intention of the appellant to evade any duty as the appellant have discharged the service tax and utilized the same though incorrectly but it was a revenue neutral situation as the appellant is otherwise entitled for the refund of the same amount. Hence, in absence of any mala fide penalty under section 78 is not imposable. Therefore, the penalty imposed under section 78 is set aside.

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