2011 (4) TMI 332

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....erefore, the appeal proper is taken up.   2. The facts of the case are that the appellant is a manufacturer of electrical conductors and is registered with the Central Excise department as an assessee. It received GTA service during 2006-07 , 2007-08 and 2008-09. Though the assessee was liable to pay service tax on the GTA service availed by it as the recipient of the said service, no service tax due on this account was paid nor the particulars reported in the monthly ST-3 returns. Adjudicating the allegation of violation of statutory formalities including payment of service tax due, the original authority confirmed demand of Rs.1,33,789/- and imposed penalty under Section 76 of the Act. Disposing the appeals filed by both the Depar....

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....he lower authorities had not indicated in the orders the option available to the assessee that if the liabilities of duty, interest and penalty of 25% of the duty were paid within 30 days of the date of the communication of the order, that would be in full discharge of the penal liability of the assessee u/s 78 of the Act. He also relies on the decision of the Tribunal in the case of Kakda Steels Pvt. Ltd. Vs. CST, Bhopal [2010(20) STR 651 (Tri. Del.)], wherein the Tribunal held that the impugned order of the Commissioner(Appeals) waiving penalty imposed under Section 76 of the Act along with penalty under Section 78 of the Act could not be held to be unreasonable. The Tribunal observed that the Hon ble High Court of Kerala in the case of A....

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....ny person, liable to pay service tax in accordance with the provisions of Section 68 or the rules made under this Chapter, who fails to pay such tax, shall pay, in addition to such tax and the interest on that tax amount in accordance with the provisions of Section 75, a penalty which shall not be less than two hundred rupees for every day during which such failure continues or at the rate of two per cent of such tax, per month, whichever is higher, starting with the first day after the due date till the date of actual payment of the outstanding amount of service tax:   Provided that the total amount of the penalty payable in terms of this Section shall not exceed the service tax payable .   The Commissioner(Appeals) did not....