TMI Blog2010 (5) TMI 219X X X X Extracts X X X X X X X X Extracts X X X X ..... reason that service tax levy on this service was new and they have no knowledge about it. Held that- penalty u/s 78 set aside but explanation that tax not paid due to financial problems and market conditions, not acceptable. Assistance of Department not sought for payment of tax in installments. Penalty u/s 76 is upheld. - ST/213/2007 - 821/2010, - Dated:- 18-5-2010 - S/Shri M.V. Ravindran ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Rs. 2,52,875/- along with interest and also appropriated the said amount of Rs. 2,52,875/- towards the tax and Rs. 61,518/- towards the interest and also imposed penalty of Es. 100/- per day under Section 76 and equivalent amount of penalty of Rs. 2,58,875/- under Section 78 of the Finance Act, 1994. The appellant accepted the payment of Service Tax as well as the liability to interest but cha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the appellant had taken registration for the services from the department in November 2004, but paid the Service Tax along with interest for the period 1999 to 2004 in November 2005 only. It is his submission that in view of this, the orders of the both the lower authorities are correct and does not require any interference. 5. We have considered the submissions made at length by both sides an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been reproduced from para we find that the learned Commissioner (Appeals) has clearly held that it is case of mere failure of non-obtaining registration and failure to make payment. This would mean that there is no ingredient for imposition of equivalent amount of penalty under Section 78 of the Finance Act, 1994. Revenue is not in appeal against the such findings. This being the case, we are of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty of the appellant to go, verify and discharge the tax liability. He could have sought the assistance of the department for payment of Service Tax dues in installments. There is nothing on record to indicate that he did so. In view of this, we hold the penalty imposed on the appellant under the provisions of Section 76 i.e. Rs. 100/- per day for every day for failure to pay Service Tax till the d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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