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2010 (11) TMI 595 - HC - Service TaxAppeal u/s 35G - Penalty - Business Auxiliary Service - Scrutiny - Whether the penalty under section 78 of the Finance Act, 1994 can be reduced below the minimum limit prescribed by invoking section 80 of the Finance Act, 1994 - in the case of Commissioner, Central Excise and Customs v. Port Officer [2010 -TMI - 77834 - GUJRAT HIGH COURT] rendered on 8th July, 2010 in Tax Appeal No. 1367 of 2009 - The Court held that on a conjoint reading of Section 76 and Section 80 of the Finance Act, 1994, it is not possible to envisage a discretion as being vested in the authority to levy penalty below the prescribed limit. If the authority imposing the penalty is not entitled to levy below the minimum prescribed, the appellate Court and the Tribunal cannot read the provision so as being vested with such powers, namely, to reduce the penalty below the minimum prescribed. The Court accordingly answered the question in the negative.The penalty under Section 78 of the Finance Act, 1994 cannot be reduced below the minimum prescribed by invoking Section 80 of the Finance Act, 1994.- Appeal is allowed by way of remand to Tribunal.
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