MODERN MACHINERY STORE Vs. CCE

JUDGEMENT

(1.) THE Appellant filed this appeal against the imposition of penalty under Section 76 and 78 of the Finance Act, 1994.

(2.) The relevant facts of the case, in brief, are that the Appellant is rendering the services under the category of "Authorised Automobile Service Station". The Appellant was helping their clients to get loan through Financial Institutions, for which they received commission from Financial Institutions. The Central Board of Excise & Customs vide Circular No. 87/05/2006 -S.T. dated 6.11.2006 clarified that the Service Tax is leviable on such activity. Accordingly, the Appellant paid the tax on 6.2.2007 and paid interest on 19.3.2007. The Adjudicating Authority confirmed the demand of tax and appropriated the amount as deposited by them and also imposed penalty under Section 76, 77 and 78 of the Finance Act, 1994. The Commissioner (Appeals) upheld the Adjudication Order.

(3.) LD . DR reiterates the findings of the Commissioner (Appeals). He submits that there was no confusion on the levy of the tax on such activity. He also submits that Board's Circular is on dated 6 November, 2006 and they paid the tax on 6.2.2007. Therefore, the imposition of penalty on various Sections of the Act is justified.