2018 (2) TMI 943

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Respondents herein had not discharged the service tax liability on an amount received as commission. When investigation was taken up, respondent during the period February 2008 to October 2008, paid the service tax liability plus interest thereof, of an amount of Rs. 11,88,789/-. Show cause notice was issued on 17.02.2011 demanding an amount of Rs. 13,00,006/- from the Respondent. The said demand was contested by respondent before the adjudicating authority as being wrongly calculated and that the said amount needs to be reduced by various amounts which have been paid earlier during the period in question as reimbursable expenses. Adjudicating authority did not agree with the contentions raised and confirmed the demands. Aggrieved by such a....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....y, the demand of 25% should be made as penalty as per section 78 of Finance Act, 1994. 7. The only para which Revenue is aggrieved against the impugned order is para 12, which I reproduce: "12. By taking note of the facts of the circumstances of the case as the service tax part amount has been paid before issue of show cause notice, I take a lenient view and I am inclined to reduce the penalty imposed under section 78 of the Finance Act, 1994 to 25% of the total service tax amount under proviso to Section 78 of the Finance Act, 1994, provided the appellant pays the remaining payable service tax aong with the applicable interest and penalty within 30 days of receipt of the order as the lower authority has failed to give the optio....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....x paid prior to the issuance of show cause notice except for an amount of Rs. 10,086 Separate penalties under Sections 76 and 78 of Finance Act, 1994 not justified Penalty undr Section 76 set aside and penalty under Section 78 upheld with modifications Option to the appellant to deposit 25% of the penalties within a period of 30 days, as not provided to the appellant in earlier proceedings, granted and meanwhile also penalty reduced to 25% - Penalty under section 77 for non-filing of return, etc. not interfered with Sections 76, 77 and 78 of Finance Act, 1994 (paras 4, 5). 8. It can be seen from the above reproduced para, the first appellate authority has misdirected himself on the law. In my considered view, once the demand of service t....