Double penalty for the same service tax default was disallowed, and the penalty under Section 78 was sustained.

Penalty under Section 78 was treated as sufficient to address the service tax default, and the imposition of two penalties for the same default was held impermissible. The Court also noted that the comparatively small amount involved supported non-interference. On that basis, the appeal was dismissed and the penalty order was sustained.

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Issues: Whether penalty under Section 76 and Section 78 of the Finance Act, 1994 could both be imposed for the same default, and whether the penalty under Section 78 alone was sufficient.

Analysis: The penalty already imposed under Section 78 was found sufficient to meet the default in payment of service tax. The Court also noted that two penalties for the same default could not be imposed on the assessee. The relatively small amount involved further supported non-interference.

Conclusion: The appeal was dismissed, and the penalty order in favour of the assessee was sustained.

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