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2015 (9) TMI 419 - HC - Service TaxLevy of penalty u/s 78 - corresponding modification (upward) in penalty due to final computation of service tax liability - benefit of reduced penalty of 25% - Held that:- Commissioner proceeds to recompute and recalculate the tax liability and penalty. The penalty that he has computed is based on evasion and consistent therewith. However, he has not ignored the proviso to Section 78 and in computing the benefit thereunder that he refers to the figures in a table, copy of which is found at page 153 of the Appeal paper book. Hence, if the Assessee is required to pay the balance of Service Tax amounting to ₹ 3,62,80,398/- and appropriate interest under Section 75 on the total amount confirmed under this order less the amount already paid and the differential penalty under Section 78 which is 25% of the Service Tax demand confirmed, less 25% of the Service Tax demand confirmed under the earlier order and already paid, then, the Assessee would get the benefit of reduced penalty. It is this computation which has been reflected in the operative order in para 14. That order has been complied with by the Assessee and as certified by the Commissioner at page 162 of the Appeal paper book. 25% of the amount of penalty as redetermined and recomputed, if deposited, the benefit would be available. In such circumstances, we do not think that the Tribunal intended to impose any outer limit or cap on the penalty. The understanding of the Revenue that the outer limit of ₹ 10 crores is imposed in the impugned order on the quantum of penalty is therefore not correct and has no basis - appeal dismissed - Decided against the assessee.
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