Summary
- CESTAT Bangalore has set aside a 75% penalty imposed on Mercedes Benz Research and Development India Pvt. Ltd. for non-payment of service tax on IT services.
- The Tribunal noted that the company had already paid the service tax of Rs.60,33,552/- and an additional 25% penalty within the stipulated time frame.
- The show-cause notice was issued after the payments were made, leading to the conclusion that no further penalty was warranted.
- This ruling underscores the importance of timely compliance in service tax matters and may influence future penalty assessments in similar cases.
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