2015 (10) TMI 228

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....the Respondent : None ORDER The appeal is directed against Order-in-Appeal No: MI/MV/129/2011 dated 10/03/2011 passed by the Commissioner of Central Excise (Appeals - II), Mumbai Zone - I wherein the Commissioner (Appeals) while maintaining the penalties under Sections 76 and 77, dropped penalty under Section 78. 2.  The facts of the case are that the respondent is rendering services unde....

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....eld the demand which was already paid and appropriated by the adjudicating authority. However, he set aside the penalty imposed under Section 78. Hence, Revenue is before me. 3. Shri B. Kumar Iyer, learned Superintendent (AR) appearing on behalf of Revenue, submits that the respondent has not only evaded the payment of service tax which was not disputed, but they had collected the said amount fro....

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....ection 78 by the learned Commissioner (Appeals). I have carefully gone through the findings of the Commissioner (Appeals) which is reproduced below: 5. I have carefully gone through the records of the case and the submissions made in the grounds of appeal. The appellants do not dispute the service tax liability of Rs. 11,55,015/-. However, they have stated in the grounds of appeal that the paymen....

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....and Rules made thereunder and would certainly invite penalty under Section 76. Considering the fact that service tax is payable only on receipt of the consideration for services rendered the appellants cannot take shelter under the excuse of financial difficulties. It is evident that the tax so collected from the customers has been diverted elsewhere. Such actions invite strict penalties. Non fili....