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2018 (4) TMI 971 - AT - Service TaxSimultaneous Penalty u/s 76 and 78 - non-discharge of service tax due to ignorance - whether the appellant was liable for penalty under Sections 76 & 78 of the Finance Act, 1994? - Held that - Section 78 was amended by Finance Act, 2008 w.e.f. 10.5.2008. If the penalty is imposed under 78, no penalty should be imposed under Section 76 - the appellant is only liable for penalty under Section 78 and not under Section 76 simultaneously - appeal allowed in part.
Issues:
Whether penalties under Sections 76 and 78 of the Finance Act, 1994 can be imposed simultaneously. Analysis: The appellant failed to discharge Service Tax on time for cleaning services provided to a company. The issue was whether penalties under Sections 76 and 78 could be imposed concurrently. The appellant contended that they paid the entire tax with interest upon notification by the Department, citing ignorance as the reason for non-compliance. The Revenue, represented by the Asstt. Commissioner, upheld the penalties. The Tribunal noted that Section 78 was amended in 2008, stating that if a penalty is imposed under Section 78, no penalty should be imposed under Section 76. Despite the post-amendment date, a Kerala High Court judgment deemed the amendment retrospective and clarificatory. Consequently, the Tribunal ruled that the appellant was only liable for penalty under Section 78, not Section 76 simultaneously. The penalty under Section 76 was set aside, while the penalty under Section 78 was upheld. The impugned order was modified accordingly, and the appeal was partly allowed.
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