Service Tax – When tax liability is paid with interest and 25% penalty, no infirmity in setting aside penalty in excess of 25% under section 80 of Finance Act, 1994

Once penalty imposed under Section 78 of the Act, no penalty was imposable under Section 76 of the Act. It has not been shown any appeal has been filed against the said order of the Tribunal and stay granted. The decision of the Hon’ble High Court of Kerala in the case of Krishna Poduval dealt the issue whether Sections 76 and 78 can be invoked to the same transactions. In the said decision, the Hon’ble High Court has also taken note of the fact that powers under Section 80 of the Finance Act, could have been invoked by the Appellate Authority. The Appellants have also raised the p...