CCE, LUDHIANA Vs. M/S. LUDHIANA GARDENS

JUDGEMENT

(1.) REVENUE is in appeal against Order -in -Appeal No. 112/CE/Ldh/09 dated 16.6.2009 passed by the Commissioner (Appeals), Chandigarh wherein the learned Commissioner (Appeals) has reduced the penalty imposed on the respondents from double the amount to equal the amount of service tax involved in this case.

(2.) THE respondents are engaged in providing service as Mandap Keeper. They were surprised by the Anti -evasion officers of Central Excise department. It was alleged that they have suppressed the taxable value. Therefore, demand was confirmed and the lower authorities has imposed the penalty of twice the amount of service tax involved under Section 78 of Finance Act, 1994. Learned Commissioner (Appeals) reduced the penalty of double the amount to equal the amount of service tax. Hence, the present appeal.

(3.) CONTENTION of the appellant is that the respondents have suppressed and concealed the quantum of service tax. The penalty under Section 78 had to be levied and the said penalty cannot be less than but not more than twice the amount of service tax.