2017 (8) TMI 439

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....overed the same from them. They failed to pay the service tax amount so collected by them to the Government account. During the said period they also provided services of Rent-a-Cab and recovered charged from their customers, on which no service tax was paid. They also failed to obtain service tax registration for these two services namely Goods Transport by Road and Rent-a-Cab. Regarding services of goods transported by road, they have provided the service to the persons who are specified under Clause (v) of Rule 2(d) of the Service Tax Rules, 1994. In respect of which, the appellant was neither liable to pay the service tax nor to collect the service tax. However they have collected the service tax but not deposited on the due date. They ....

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....s (i), (ii) and (iii) above under section 75 of the Finance Act, 1994 by M/s. G.V. Alurkar. The partial amount of interest of Rs. 4,45,470/- already paid is adjusted against the total interest liability. (v) I impose a penalty of Rs. 70,13,246/- on M/s. G.V. Alurkar under Section 78 of the Finance Act 1994. However; I give option to pay 25% i.e. Rs. 17,53,312/- if they pay the total amount of Service Tax and total interest and reduced penalty within 30 days from the date of communication of this order. (vi) I also impose penalty of Rs. 5,000/- on M/s. G.V.Alurkar, under Section 77 of the Finance Act 1994 and I also refrain from imposing penalty under Section 76 of the Act ibid. Being aggrieved by the aforesaid impugned order, appel....

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....hotra 2015 (37) STR 684 (Uttarakhand) Therefore the penalty imposed by the adjudicating authority is illegal and without authority of law. 3. On the other hand, Shri M.P. Damle, Ld. Assistant Commissioner (A.R.) appearing on behalf of the Revenue reiterates the findings of the impugned order. He submits that whether under Section 73A(4) or Section 73(1) of the Act, service tax determined, the assessee is liable to pay such service tax accordingly they are liable for penalty under Section 78 of the Finance Act. 4. We have carefully considered the submissions made by both the sides. The main issue to be decided is that whether in the facts and circumstances of this case, penalty under Section 78 is imposable. We find that the demand ....

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.... such person, not being in excess of the amount specified in the notice, and thereupon such person shall pay the amount so determined. Penalty in the present case was imposed under Section 78 prevailing at the material time, reads as under: "78. [Where any service tax has not been levied or paid or has been short-levied or short-paid or erroneously refunded, by reason of- (a) fraud; or (b) collusion; or (c) wilful mis-statement; or (d) suppression of facts; or (e) contravention of any of the provisions of this Chapter or of the rules made thereunder with intent to evade payment of service tax, the person, liable to pay such service tax or erroneous refund, as determined under sub-section (2) of section 73, shall also....