Penalty provisions revised for cases not involving intentional evasion of service tax

5. Section 76 is being amended to rationalize the provisions relating to penalties, in cases not involving fraud or collusion or wilful mis- statement or suppression of facts or contravention of any provision of the Act or rules with the intent to evade payment of Service Tax, in the following manner,-
   

(a) penalty not to exceed ten per cent. of Service Tax amount involved in such cases;
(b) no penalty is to be paid if Service Tax and interest is paid within 30 days of issuance of notice under section 73 (1);
(c) a reduced penalty equal to 25% of the penalty imposed by the Central Excise officer by way of an order is to be paid if the Service Tax, interest and reduced penalty is paid within 30 days of such order; and
(d) if the Service Tax amount gets reduced in any appellate proceeding, then the penalty amount shall also stand modified accordingly, and benefit of reduced penalty ( 25% of penalty imposed) shall be admissible if service tax, interest and reduced penalty is paid within 30 days of such appellate order.