CCE Vs. AMMAA TRADERS

JUDGEMENT

(1.) HEARD both sides.

(2.) THE original authority confirmed service tax demand of Rs. 2,61,768/ - along with interest relating to the period 01.08.04 to 31.03.06 and appropriated the amount paid in March, 2006 and October, 2006. He imposed penalty under Section 76 and a penalty of Rs. 1000 under Section 77 and a penalty of Rs. 2,61,768/ - under Section 78 of the Finance Act, 1994 (However, he has not given any option to pay concessional penalty in terms of proviso to Section 78). The party filed an appeal before the Commissioner (A). The Commissioner (A) upheld the demand of service tax and interest. He set aside the penalty imposed on the Appellants under Sections 76 & 77 of the Act and also reduced the penalty to 25% of the amount imposed by the original authority under Section 78 of the Finance Act, 1994.

(3.) LD . CA, strongly supports the order of the Commissioner (A). He submits that when penalty under Section 78 is imposed, there is no justification for separate penalty under Section 76. The Commissioner (A) has rightly set aside the penalties under Section 76 & 77 and in as much as entire duty along with interest stands paid before issue of show cause notice on 10.04.07, and that the Commissioner (A) has rightly extended the concessional penalty under proviso to Section 78 of the Finance Act, 1994.