Penalty U/s 76 of Finance Act 1994

This query is : Resolved

Armaan (Querist)
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16 December 2010
Hello Experts

If a person fails to pay service tax Is the nature of Penalty under section 76 mandatorily to be paid or Is it subject to the discretion of officer to waive off the penalty?

The word "Shall" indicates that its mandatory in nature but i am confused over it seems that its very strict law in this regard.

Please clarify my doubt

CA Shailesh Kumar Bhagat

CA Shailesh Kumar Bhagat (Expert)
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16 December 2010 Penalty is mandatory, officer cannot waived off.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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16 December 2010 One of the penal provision under Service Tax is provided under Section 76 of Finance Act, 1994. Although the penalty is liable to be imposed for the circumstances covered under the said section, Section 80 of the Finance Act, 1994, provides provisions not to impose penalty, for the failure referred to in section 76, if the Service Tax assessee proves that there was sufficient cause for such failure. to that extent the penalty provision is not MANDATORY.

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