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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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