hai experts,
As per an OIO issued on us by the Additional Commissioner, penalties under sec 76 & 78 of the FA,1994 are simultaneously imposed. is that sustainable?
period of dispute: 4/ 2006 to 9/2009
issue: short payment of ST in connection with the CFA services provided
penalties imposed as per the OIO:
(a) Rs. 100/- per day from the defaulted payment of Service Tax till 17-4-2006 and thereafter Rs. 200/-per day till 10-5-2008 Under Sec 76 of the FA,1994
(b) Rs. 5000/- Under Sec 77 of the FA, 1994
(c ) Amount equal to the short payment alleged Under Sec 78 of the FA,1994
is that sustainable in view of the changes from 10-5-2008?
Simultaneous Penalties Under Sections 76 and 78 of Finance Act 1994 Deemed Unsustainable; Section 78 Penalties Prevail A forum discussion addressed the issue of simultaneous penalties under Sections 76 and 78 of the Finance Act, 1994, imposed for short payment of service tax. The query raised concerns about the sustainability of such penalties, especially after amendments in 2008. The consensus among the respondents was that penalties under both sections cannot be imposed simultaneously. Legal precedents and amendments indicate that Section 78 penalties, being more comprehensive, should suffice, and imposing both is contrary to legislative intent. It was suggested that relief might be obtainable at the appeal level, as penalties under Section 78 are considered the maximum permissible. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
