TaxTMI 
TaxTMI 
2018 (1) TMI 1276
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....No.57 of 2014, dated 2/7/2014, the Additional Commissioner, confirmed the demand of service tax of Rs. 23,34,424/- along with interest under provisio to Section 73 92) and 75 of the Finance Act, 1994. The order also appropriated service tax amount of Rs. 23,34,424/- and interest of Rs. 9,95,980/- paid by the assessee. Further, the adjudicating authority had imposed penalty of Rs. 23,34,424/- and Rs. 10,000/- under Sections 78 and 77 of the Finance Act, 1994. 4. Aggrieved by the penalty imposed, the assessee preferred an appeal to the Commissioner (Appeals) vide Appeal No.191/2014 (MST) dated 24/9/2014. The Appellate Authority reduced the penalty imposed under Section 78 to 50% in respect of transaction for the period from 8/4/2011 to 30/9/2011, as the said proviso to sub-Section 1 of Section 78 of the Act was introduced with effect from 8/4/2011 only. Accordingly, the Commissioner (Appeals II) vide Order-In-Appeal No.447 of 2015, dated 31/12/2015 held that the impugned order is upheld in its entirety but modified the penalty imposed under Section 78 of the Act is upheld in respect of the transaction for the period from 1/6/2007 to 7/4/2011. 5. Aggrieved by the said order, the....
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....) (v). Mett. Macdonald Ltd., Vs. Commission of C.Ex.Jaipur {2006 (2) STR 524 (Tr.Del). (vi). A.K.Construction Vs. Commissioner of Customs & C.Ex., Nagpur {2011 (22) STR 445 (T)}. 9. Heard Mr.A.P.Srinivas, learned counsel for the appellant and perused the materials available on record. 10. After considering the statutory provisions and submissions, the Commissioner of Service Tax, vide order, dated 2/7/2014, order in original, held thus:- "13. In the Show Cause Notice No.42/2012, dated 22/3/2012, it was proposed to appropriate Service Tax of Rs. 17,66,551/- and interest of Rs. 1,76,456/- paid by the assessee on 31/3/2011, 19/7/2011, 23/12/2011 & 14/1/2012. Further, it is seen from the records available that the assessee has also paid the balance service tax amount or Rs. 5,67,873/- and the interest amount of Rs. 5,18,460/- vide challan No.0001 dated 30/5/2014 which is on record. They have also paid an interest amount of Rs. 3,01,064/- for the period from 2008 2009 to 2012 2013 (upto June 2013). Thus, the total service tax paid is Rs. 23,34,424/- and the total interest paid is Rs. 9,95,980/-. 14. In terms of Section 68 of the Finance Act, 199....
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.... thirty four thousand four hundred and twenty four only), including education cesses from Shri P.S.Swaminathan payable for the period from 1/6/2007to 30/9/2011 under proviso to Section 73 (1) of the Finance Act, 1994 read with Section 73 (2) of Finance Act, 1994; 17.2. I appropriate the amount of Rs. 23,34,424/- (Rupee Twenty three lakhs thirty four thousand four hundred and twenty four only), including cesses paid by the assessee, as discussed in para 13, and adjust the same towards the demand made at clause 17.1 above; 17.3. I order the assessee to pay the interest on the demand confirmed at clause 17.2 under Section 75 of the Finance Act, 1994 17.4. I appropriate the interest amount of Rs. 9,95,980/- (Rupees Nine lakhs ninety five thousand nine hundred and eighty only) paid by the assessee, as discussed in para 13 above, and adjust the same towards the interest made at clause 17.3 above; 17.5. I impose penalty of Rs. 23,34,424/- (Rupees Twenty three laksh thirty four thousand four hundred and twenty four only) under Section 78 of the Finance Act, 1994. However, the penalty imposed shall be reduced to 25%, if the service tax amount demanded und....
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....y had been the subject matter of debate and undergone several rounds of litigations. However, considering the facts and circumstances, the Government, in the Finance Act, 2012, had inserted sub-Section (2) to Section 80 of the Finance Act, 1994 and it reads as under:- (2) Notwithstanding anything contained in the provisions of Section 76 or Section 77 or Section 78, no penalty shall be imposable for failure to pay service tax payable, as on the 6th days of March, 2012, on the taxable service referred to in sub-clause (zzzz) of clause (105) of Section 65, subject to the condition that the amount of service tax along with interest is paid in full within a period of six months from the date on which the Finance Bill, 2012 receives the assent of the President. 11. The above provision grants relief from the penalty subject to fulfillment of a condition that the amount of service tax payable, as on the 6th days of March 2012 along with interest is paid in full within a period of six months from the date (i.e. from 28/5/2012) on which the Finance Bill, 2012 receives the assent of the President. However, the appellants had not paid their entire tax liability along with in....