2008 (11) TMI 131

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....or the Appellant. R. C. Chaubey for the Respondent. [Order per : M. Veeraiyan, Technical Member.]. - These two appeals are by the Department against the order of the Commissioner (Appeals) Nos. IND-I/41 & 42/2007, dated 27-2-2007 by which the penalties imposed under sections 77 and 78 of the Finance Act, 1994 have been set aside by the Commissioner (Appeals). 2. Heard both sides. 3. The basi....

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....lty imposed on the appellants as per the impugned orders have been set  aside. I would like to further state that the action on the part of adjudicating authority to consider the payments made already by the appellants for appropriation towards interest liability in the first instance and to hold that they are liable to pay certain balance amount as tax along with interest is quite improper a....

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..... Moreover, considering the fact that the entire gamut of taxation with reference to GTO service was under dispute and that the appellants have paid not only the tax amount but also the interest on account of delay in payment of tax, no penalty may be warranted on them." 5. From the above, it could be seen that there was dispute about payment of service tax which was settled by the Hon'ble Suprem....