2014 (12) TMI 746

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....sioner (AR) JUDGEMENT Per: P R Chandrasekharan: The appeal and stay petition are directed against Order-in-Appeal NO. PUN-EXCUS-001-APP-11-12-14-15 dated 10/04/2014 passed by the Commissioner of Central Excise (Appeals), Pune - I Commissionerate. 2. Vide the impugned order, the learned lower appellate authority has enhanced the penalty imposed on the appellant under Section 78 of the F....

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..... 2,28,869/- being 50% of the service tax demand confirmed and also penalty of Rs. 10,000/- under Section 70 read with Section 77 of the Finance Act, 1994. Revenue filed an appeal before the Commissioner (Appeals) wherein penalty was raised to 100% inasmuch as Section 78 at the material time did not provide for imposition of a penalty less than 100%. 3.1 The learned counsel submits that the app....

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....much as the service tax liability along with interest has been discharged prior to the issue of show cause notice, sub-section (3) of Section 73 provides for waiver of penalties if reasonable cause is shown for the failure to pay tax. In the present case, the appellant is small time service provider who is ignorant of the statutory provisions relating service tax. Therefore, the provisions of Sect....