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2009 (8) TMI 469 - CESTAT, NEW DELHIPenalty- The assesese firm had provided services to company ‘V’ under the categories of ‘Rent-a-cab-services’ and ‘Business Auxiliary Service’. The partner of assesese firm is also Director of copany ‘V’. Superintendent of Central Excise, while scrutinizing the record of the Company noticed that the assessee had not paid tax in respect of Rent-a-Cab services and Business Auxiliary Services. In the month of January, 2007, the Superintendent of Central Excise directed the assessee to deposit the tax along with interest. The assessee on 24-1-2007 paid service tax of Rs. 1,90,902 and Rs. 2,56,833 for the period from 1-4-2000 to November, 2006 in respect of Rent-a-Cab services and for the period from 1-4-2004 to 31-3-2006 in respect of Business Auxiliary Services. They also paid the interest of Rs. 1,38,140 on 31-5-2006. A show-cause-notice dated 24-9-2007 was issued proposing to impose penalty under sections 76, 77 and 78 of Finance Act, 1994. Held that- I find that there is a contravention of the provisions of the Act with intent to evade payment of tax, so, the Commissioner (Appeals) rightly upheld the penalty under sections 77 and 78 of the Act. The appeal filed by the assessee has no merit. However the asseesee deposited entire amount of tax and interest before issue of show cause notice, in terms of proviso to section 78, penalty would be 25 per cent of tax amount.
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