2008 (9) TMI 104

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....challenge the penalty of Rs. 90,000 imposed on them under section 76 of the Finance Act, 1994 ('the Act'). During the period 1/2003 to 9/2003, the appellants did not pay tax due on the courier service rendered by them. On initiation of proceedings, the appellants paid tax due along with interest. Penalty imposed is challenged on the ground that once duty and interest are paid, there could not be p....

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.... penalty payable in terms of this section shall not exceed the service tax payable." It is admitted by both sides that in a case where service tax and interest are paid following adjudication proceedings invoking sections 73, 75 and 76 of the Act, penalty under section 76 of the Act could be validly imposed. I find that the show-cause notice had proposed to demand service tax not paid under sec....