2011 (8) TMI 423 - DELHI HIGH COURT

If the appellant had discharged its full duty and interest liability, that itself showed its bonafide or not. - Simultaneous penalties under both Sections 76 and 78 - The benefit of this Amendment in Section 78 by the Finance Act, 2008 - Held that:- when the service tax/short-service tax was paid before the show cause notice, it was a bona fide error. - Decided in favour of Assesee.

Regarding Penalty - Held that:- there is bonafide error on the part of Appellant. therefore there is not question of penalty. decided in favour of Assessee.

Regarding simultaneous penalty - penalty u/s 76 and u/s 78 - Amendment to section 78 - Held that:- With this amendment the legal position now is that simultaneous penalties under both Section 76 and 78 of the Act would not be levied. However, since this amendment has come into force w.e.f. 10th May, 2008, it cannot have retrospective operation in the absence of any specific stipulation to this effect. Going by the nature of the amendment, it also cannot be said that this amendment is only clarificatory in nature.