Simultaneous penalties for the same service tax default are impermissible where Section 78 penalty already applies.

Penalty under Section 76 of the Finance Act, 1994 was held unsustainable where penalty under Section 78 had already been imposed for the same default, as simultaneous penalties for identical conduct amount to double jeopardy. The Tribunal applied its earlier precedent and found it squarely covered the facts, particularly since the appellant had already paid the service tax, interest, and part of the penalty. The Section 76 penalty was set aside and consequential relief followed.

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Issues: Whether penalty under Section 76 of the Finance Act, 1994 could be sustained when penalty under Section 78 of the Finance Act, 1994 had already been imposed for the same default.

Analysis: The appellant had already paid the service tax, interest, and 25% of the penalty. The Tribunal applied its earlier view that simultaneous penalties under Sections 76 and 78 for the same conduct amount to double jeopardy and held that the cited precedent squarely governed the facts of the case.

Conclusion: The penalty under Section 76 was not sustainable in addition to the penalty under Section 78, and the appeal was allowed with consequential relief.

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