2018 (12) TMI 94

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....ed in providing services of design, engineering, civil construction and supply of material in relation to sea water de-salinization project for CPCL, Chennai, holding that the activity undertaken by the respondent is classifiable under the category of "works contract service" as defined under Section 65 105) (zzza) of the Finance Act, 1994, the department issued a show-cause notice to the respondent. The original authority has adjudicated the case and has confirmed a demand of Rs. 21,09,742/- along with interest under Section 75 of the Finance Act, 1994. Also imposed penalties under Sections 76, 77 & 78 of the Finance Act, 1994. On an appeal filed by the respondent, the Commissioner (Appeals) has set aside the penalty under Section 76 holdi....

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....ned AR for the department has made a strong case in their favour. We find that the Commissioner (Appeals) has relied upon the decision in the case of CCE, Bangalore Vs. Motor World reported in 2012 (27) STR 225 (Kar). However, we find that in a subsequent years, the Tribunal has been consistently holding that penalty under Sections 76 & 78 can be imposed simultaneously. Even Kerala High Court in the case of CCE Vs. Krishna Poduval - 2006 (1) STR 185 (Ker) has observed that even if the offences are committed in the course of same transaction or arise out of the same act. We further find that this bench in the case of BCCI Vs. CST, Mumbai has observed as under: 6.11 The appellant has also raised a contention as to whether penalties can be ....

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....ince the law has been amended prospectively w.e.f. 10-5-2008 so as to bar the imposition of penalties simultaneously, only one of the penalties would survive and not both after the amendment. As regards the reference made by a Single Member to the Larger Bench of the Tribunal in this regard, we note that the decision on penalties has been rendered by a High Court and this Tribunal does not have jurisdiction to sit on judgment over a decision rendered by a High Court. Therefore, the reference made by a Single Member to a Larger Bench of the Tribunal is of no consequence for imposition of penalties unless and until the decision of the Hon'ble High Court is overruled by the Hon'ble Supreme Court. Further we note that in the decision rendered b....