2013 (6) TMI 290 - AT - Service Tax

Tribunal Upholds Penalties Under Sections 78 and 77, Rejects Appeal

The Tribunal rejected the department's appeal against the order of the Commissioner (Appeals) regarding the imposition of penalties under Sections 78 and ... Levy of Penalty u/s 76 - original authority has confirmed the demand of service tax and imposed penalty under Section 78 but refrained from imposing penalty under Section 76. - Held that:- It has been held by the Tribunal in the case of Opus Media and Entertainment Vs. CCE, Jaipur [2007 (4) TMI 612 - CESTAT NEW DELHI] that when Section 78 penalty is imposed, there is no justification for imposing penalty under Section 76. Issues:Appeal against order of Commissioner (Appeals) regarding imposition of penalties under Sections 78 and 77 without penalty under Section 76.Analysis:1. Issue of Imposition of Penalties:The case involves an appeal by the department against the order of the Commissioner (Appeals) regarding the imposition of penalties under Sections 78 and 77 without imposing a penalty under Section 76. The original authority confirmed a demand of service tax and imposed penalties under Sections 78 and 77 but refrained from imposing a penalty under Section 76. The Commissioner (Appeals) upheld this decision, stating that once a penalty under Section 78 is imposed, there is no justification for imposing a separate penalty under Section 76. The department contested this decision, leading to the appeal.2. Analysis of Tribunal's Decision:The Tribunal referred to a previous case, Opus Media and Entertainment Vs. CCE, Jaipur, where it was held that when a penalty under Section 78 is imposed, there is no justification for imposing a penalty under Section 76. The Tribunal, after considering the submissions of the learned Deputy Commissioner and reviewing the records, found no merit in the department's appeal. The Tribunal concluded that since the penalty under Section 78 had already been imposed, there was no need for an additional penalty under Section 76. Therefore, the appeal by the department was rejected based on the precedent set by the Tribunal in the aforementioned case.3. Final Decision:In the final judgment, the Tribunal rejected the department's appeal against the order of the Commissioner (Appeals) regarding the imposition of penalties under Sections 78 and 77 without imposing a penalty under Section 76. The Tribunal's decision was based on the principle established in a previous case that when a penalty under Section 78 is imposed, there is no justification for imposing a penalty under Section 76. The department's appeal was dismissed, upholding the decision of the lower authorities regarding the penalties imposed.This comprehensive analysis of the judgment highlights the issues involved, the Tribunal's decision based on legal precedents, and the final outcome of the appeal.