Penalty can be imposed for default/delay in payment of Service Tax under both Section 76 & 78

Sagar Enterprises Vs CST (CESTAT Mumbai)

Penalty under Section 76 is imposed for default in payment of tax and, no mensrea is required to be proved for imposing such penalty. For mere default and delay in payment of tax, the liability to penalty arises. The Hon’ble High Court of Kerala in the case of Asst. Commissioner of Central Excise v. Krishna Poduval – 2006 (1) S.T.R. 185 (Ker.) has held that penalty under Section 76 of the Finance Act, 1994 can be imposed for mere default/delay in payment of Service Tax in addition to the penal

Please become a Premium member. If you are already a Premium member, login here to access the full content.