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2013 (6) TMI 203 - CESTAT BANGALOREPenalty - service tax was paid during investigation with interest - reverse charge on GTA Service - The proposal to impose penalties on the assessee under Sections 76, 77 and 78 of the Act, as contained in the original show-cause notice dated 04.09.2008, was dropped by the original authority. In revisionary proceedings, the Commissioner has imposed a penalty of ₹ 1,03,009/- on the assessee under Section 76 of the Act, ordered appropriation of the late fee of ₹ 14,000/- towards penalty under Section 77 of the Act, and dropped the proposal for imposition of penalty under Section 78 of the Act. Held that:- the department’s allegation that they had suppressed the value of the taxable service with intention to evade payment of service tax was tacitly accepted by the assessee. It is indisputable that the same constitutes one of the grounds for imposition of penalty under Section 78 of the Act. Therefore, the Commissioner’s decision to drop this penalty on the premise that the assessee did not have any intention to evade payment of service tax cannot be sustained. In so far as the amount of service tax + cesses paid by them for the normal period is concerned, there can be no corresponding penalty under Section 78 of the Act. In this scenario, the quantification of penalty under Section 78 of the Act in the instant case will be left to the original authority. - Decided partly in favor of revenue.
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