2008 (11) TMI 127

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... Appellant. Shri B.B. Jagtap, for the Respondent. [Order]. - This is an appeal filed by the revenue. The brief facts of the case are that the respondents, Skypak Services Specialities, are engaged in providing courier services to various clients. Based on certain information, investigations were carried out, which revealed that while the respondents were recovering service tax from their cli....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

..... 1,000/- under Sec. 77 of the Finance Act, 1994. On appeal, the Commissioner (Appeals) upheld the demand of service tax along with interest but reduced the penalty to Rs. 75,000/- under Sec. 76 and 77 of the Finance Act, 1994. 2. The revenue in its appeal has contended that the penalty provided under Sec. 76 is a mandatory penalty which cannot be less than Rs. 200/- per every day during such f....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ssioner of Central Excise v. Krishna Poduval, 2006 (1) S.T.R. 185 (Ker.) wherein it was held that penalties imposed under Sections 76 and 78 of the Finance Act, 1994 are distinct in nature and even if offences are committed in course of same transaction or arisen out of same act, penalty imposable for ingredients of both offences. Person who is guilty of suppression deserve no sympathy under Sec. ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....d on account of financial losses and therefore, the penalty has rightly been reduced by the Commissioner (Appeals) to Rs.75,000/-, which has already been paid and the order does not need any interference. 5. I have considered the submissions. I do find that under Sec. 76 of the Finance Act, 1994 a minimum penalty of Rs. 200/- per day, subject to maximum of the amount of service tax evaded has b....