TaxTMI 
TaxTMI 
2014 (2) TMI 1130
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....long with applicable interest; appropriated an amount of Rs.1,36,78,477/- paid by the appellant under protest; imposed penalties on the appellant under the provisions of Sections 76 and 77 of the Finance Act, 1994, and also an equivalent amount of penalty under Section 78 of the Finance Act by classifying the activity undertaken by the appellant under the category of "Site formation and clearance, excavation and earthmoving and demolition" service as defined in Section 65(97a) read with Section 65(105)(zzza) of the Finance Act, 1994. Aggrieved of the same, the appellant is before us. 3. The learned consultant for the appellant submits that as per the work orders given by M/s. Western Coalfields to the appellant, the activity undertaken b....
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....here was a delay on the part of the appellant in discharging the tax liability. 3.1 He also contends that the imposition of equivalent amount of penalty under Section 78 is unsustainable in law inasmuch as the non-payment/delayed payment of service tax was purely on account of non-reimbursement of the service tax amount by the recipient and, therefore, the said penalty should be waived. He also relies on the decision of this Tribunal in the cash of Shri Ganta Ramanaiah Naidu vs. Commissioner of Central Excise where in similar circumstances, this Tribunal set aside the penalties imposed by invoking the provisions of Section 80 of the Finance Act, 1994 and therefore, the same be followed in the present case also. 4. The learned Ad....
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.... specified places, of the material removed. Section 65(97a) defines "Site formation and clearance, excavation and earthmoving and demolition" service as : "Site formation and clearance, excavation and earthmoving and demolition" includes, - (i) Drilling, boring and core extraction services for construction, geophysical, geological or similar purposes; or (ii) Soil stabilization; or (iii) Horizontal drilling for the passage of cables or drain pipes; or (iv) Land reclamation work; or (v) Contaminated top soil stripping work; or (vi) Demolition and wrecking of building, structure or road, but....
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....vice tax demand of Rs.1,64,23,993/- confirmed in the impugned order. Once the liability to service tax is confirmed, liability to pay interest is automatic and consequential and accordingly confirmation of interest on the above demand is also sustainable in view of the provisions of Section 75 of the Finance Act, 1994. 5.3 As regards the penalties imposed on the appellant, they have been imposed under the provisions of Sections 76, 77 and 78 of the Finance Act, 1994. Penalty under Section 76 is attracted for delay or default in payment of service tax. There is no mens rea required to be proved for the imposition of the said penalty. The Hon'ble Court Kerala in the case of Assistant Commissioner of Central Excise vs. Krishna Poduval (....