2007 (10) TMI 30

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....extent that it modifies the order-in-original by setting aside the penalties imposed under Sections 76, 77 and 78 of Chapter V of the Finance Act, 1994. The fact that Service tax of Rs. 1,93,238/- was due along with interest from the respondent-assessee was never in dispute. However, since the assessee had deposited the Service tax in piecemeal on various dates as noted in paragraph 4 of the impug....

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....III Gurgaon v. Machino Montell Ltd. (supra) was reversed by the High Court of Punjab and Haryana in CCE v. Machino Montell Ltd., reported in 2006 (4) S.T.R. 177 (P&H) = 2006 (202) E.L.T. 398 (P&H), in support of his finding. 4. Admittedly, the appellant did not deposit interest and penalty amounts as contemplated by the provisions of Section 78 of the said Act, which is similar to Section 11AC ....

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....e, there would not be any automatic waiver of penalty. 6. It transpires from the record that there was delay of 146 days in depositing the Service tax due for the period from July 2003 till 21-8-2006. Penalty was, therefore, imposable under Section 76 of the Act, which did not involve mens rea. No returns were filed and, therefore, penalty under Section 77 was also imposable. The original autho....