COMMISSIONER OF CENTRAL EXCISE Vs. BHAGWATI FOREX

JUDGEMENT

(1.) REVENUE has preferred the appeal against the order dated 12.1.2009 passed by the Commissioner (Appeals), Chandigarh. The appellate Commissioner partly allowed the appeal preferred by the respondent/assessee against the order dated 31.3.2008 of the Assistant Commissioner, Central Excise, Jalandhar. Proceedings were initiated against the assessee who was engaged in the business of money transfer under an agreement with M/s. Western Union Financial Services, USA. Alleging, that the petitioner had provided the taxable Business Auxiliary Services (BAS) to the overseas entity from India and is therefore liable to tax, proceedings were initiated. The primary authority confirmed tax demand of Rs. 61,721/ - and imposed penalties under Section 75A, Section 76, Section 77 and Section 78 of the Act as well, apart from interest under Section 75.

(2.) AGGRIEVED , the assessee preferred an appeal. The ld. appellate Commissioner confirmed the primary order to the extent of the demand of service tax, interest and penalties under Sections 75 and 78 but dropped the penalty imposed by the primary authority under Section 76 on the ground that no penalty simultaneously could be imposed, following the judgment of this Tribunal in Financiers v. CCE [ST Appeal No. 123 of 2007 -SM (BR), dated 4 -10 -2007].