TaxTMI 
TaxTMI 
2023 (3) TMI 129
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.... show cause notices issued to M/s. Carzonrent (India) Pvt. Ltd. [the respondent]. The Commissioner has confirmed the demand under the category of 'rent-a-cab-operator' services and imposed penalties under sections 76 and 77 of the Finance Act, 1994 [the Finance Act]. 2. This appeal has been filed by the Department on the limited ground that the Commissioner committed an error in imposing a pre-determined and fixed amount of penalty under section 76 of the Finance Act. 3. The respondent is engaged in the activity of providing vehicles and motor cabs to customers, against lease rental charges and fleet management fees. During the period in dispute, the respondent did not discharge service tax liability as according to the respondent, th....
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....re continues but which may extend to two hundred rupees for every day during which such failure continues, so, however, that the penalty under this clause shall not exceed the amount of service tax that he failed to pay. Period from 18.04.2006 to 07.04.2011 Penalty which shall not be less than two hundred rupees for every day during which such failure continues or at the rate of two percent of such tax, per month, whichever is higher, starting with the first day after the due date till the date of actual payment of the outstanding amount of service tax: Provided that the total amount of the penalty payable in terms of this section shall not exceed the service tax payable. Period from 08.04.2011 to 13.05.2015 Penalty which shall ....
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.... show cause notices were issued to them in the year 2010/2011" 8. In the operative part of the order, the Commissioner imposed penalties under section 76 of the Finance Act in the following manner: "ORDER (i) Ist Show Cause Notice dated 13.04.2011 ***** (iv) I impose a penalty of 34,56,000/- (Rupees thirty four lac fifty six thousand only) on M/s Carzonrent (India) Pvt. Ltd., under section 76 of Finance Act' 1994. This penalty imposed is only for the period from 01.04.2006 to 10.05.2008 as per the provisions of Section 78 discussed above in this order. I order the recovery of the same alongwith the penalty of Section 78 imposed herein above in sub-section (ii). ***** (ii) IInd Show Ca....
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....g documents for fulfillment of the conditions stipulated in the Notification. Thus, as the order impugned in this appeal stands merged with the final order of the Tribunal, the submission was that the appeal filed by the Department should be dismissed as having been rendered infructuous. Learned chartered accountant also submitted that in any view of the matter the penalty under section 76 of the Finance Act has to be re-quantified. In this connection, learned chartered accountant pointed out that the penalty imposed under section 76 in the first show cause notice deserves to be set aside as the demand for the extended period has already been set aside by the Tribunal and in regard to the penalty imposed under the second and third show caus....