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2015 (10) TMI 2292 - AT - Service TaxPenalty under Section 76 and 78 of Finance Act, 1994 – Simultaneous imposition of penalties under Sections 76 & 78 cannot be made applicable to SCN issued after 16/05/2008 when amended provisions of Sec 78 were in force – No intention to evade tax and by invoking Section 80, penalties should be set aside due to financial hardships – Revenue contends that simultaneous penalties are imposable for period prior to 16/05/2008 when Sec 78 was amended – Tax was not paid till detected by department thus acts of appellant were clearly mala-fide. Held That:- Simultaneous penalty under Sec 76 is not imposable upon the appellant when SCN was issued after 16/05/2008 when amended provisions of Sec 78 were existing – Decision made in case of CST Bangalore Vs The Peoples Choice [2014 (4) TMI 291 - KARNATAKA HIGH COURT] followed – Decided in favour of appellant. No intimation was filed by appellant to make clear his intentions and have no reasonable cause to waive penalty under Section 78 – There was suppression of material facts with intention to evade payment of service tax as it was already collected from service recipients but was not paid to department - Extending 25% reduced penalty option on reworked out amount under Sec-78 is required to be decided by original authority – Matter remanded back.
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