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2011 (6) TMI 344 - CESTAT, AHEMDABADPenalty under proviso to Section 78 - The appellants also challenged the imposition of penalty @ 2% of the service tax amount per month under Section 76 as without jurisdiction, because the appellant could not have been penalized under different sections for the same alleged offence - Held that:- The incidents of imposition of penalty are distinct and separate and even if the offences are committed in the course of same transaction or arises out of the same act, the penalty is imposable for ingredients of both the offences - Therefore, penalty can certainly be imposed on erring persons under both the above Sections, especially since the ingredients of the two offences are distinct and separate. Perhaps invoking powers under S. 80 of the Finance Act, the appropriate authority could have decided not to impose penalty on the assessee if the assessee proved that there was reasonable cause for the said failure in respect of one or both of the offences - Hence, gave the benefit of reduced penalty under proviso to Section 78.
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