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2011 (4) TMI 332 - AT - Service TaxPenalty u/s 78 - There is no dispute that the assessee had discharged tax due along with interest before the original authority passed the adjudication order - It is also undisputed that neither of the lower authorities indicated the option available to the assessee to pay 25% of the penalty within 30 days of the receipt of the respective orders in complete discharge of penal liability provided under Section 78 of the Act. In the K.P. Pouches (P) Ltd. case deciding a similar case, Hon ble Delhi High Court held that it was enough for the appellant to pay 25% of the penalty in complete discharge of its penal liability under Section 78 of the Act if it paid the said amount within 30 days of the said judgment. The assessee had already paid tax and interest. I find that though the K.P. Pouches (P) Ltd. case dealt with Section 11AC of the Central Excise Act, the ratio of the decision is applicable also to service tax matters since Section 78 of the Finance Act is identically worded as Section 11AC of the Central Excise Act. I find that the assessee has already paid 25% of the penalty. It is ordered that the assessee will have no further liability to penalty under Section 78 of the Act in view of the judgment in the case of K.P. Pouches (P) Ltd. by the Hon ble High Court of Delhi. The appeal is thus allowed in part.
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