Service tax – Benefit of reduced penalty of 25% in appeal cases

Service tax – Benefit of reduced penalty of 25% applicable only in cases where the tax amount is increased by the Commissioner (Appeals) CCE, Trichy Vs. SBI, Kumbakonam (CESTAT Chennani) – The fourth proviso to the said Section 78 provides that the reduced penalty of 25% is available if the same is paid within 30 days of the Commissioner (Appeals) but this proviso applies in the case where the Commissioner (Appeals) enhances the penalty and not where he reduces the penalty. In this case, the Commissioner (Appeals) has reduced the penalty and hence the respondents cannot take advant...