COMMR. OF C. EX., CHANDIGARH Vs. ARPIT ADVERTISING

JUDGEMENT

(1.) THE appellant is in the business of canvassing advertisements for newspapers and they get commission for such business. They were registered under the Service Tax Rules, 1994 for payment of service tax as an advertising agency. The Revenue claims having received "specific information" that the appellant was suppressing the value of services rendered by the appellant. So they conducted some investigations including a search at the premises of the appellant. Based on evidences gathered a SCN was issued to the appellant which was adjudicated vide order dated 6 -3 -07. The operative part of the order is reproduced below : -

(2.) UNDER Section 76 of the Act, I impose penalty equal to Rs. 100/ - for everyday during the period till the amount of Rs. 13,36,444/ - along with interest is paid by the assessee, subject to the conditions that penalty amount shall not exceed Rs. 13,36,444/ -.

(3.) UNDER Section 78 of the Act, I impose penalty of Rs. 13,36,444/ - for suppressing the value of taxable service. Provided that if the confirmed amount along with interest is paid within 30 days of the communication of this order, the penalty amount shall get reduced to Rs. 3,34,111/ - (25% of the confirmed Service Tax amount) under proviso to the Section 78 of the Act.