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2016 (6) TMI 1419 - CESTAT NEW DELHINon-payment of service tax within stipulated time - levy of interest and penalty u/s 76 of FA - period November' 2005 to March' 2006 - HELD THAT:- Service tax liability has not been discharged by the appellant within the stipulated time prescribed in Rule 6 of the Service Tax Rules, 1994. Thus, interest liability is automatic and as such, confirmation of such liability by the authorities below is in conformity with the statutory provisions. Penalty u/s 76 - HELD THAT:- Imposition of equal amount of penalty under Section 76 of the Finance Act, 1994 is not proper and justified inasmuch as the statute mandates for imposition of penalty in case of non-payment of service tax within stipulated time, which is to the tune of ₹ 100/- per every day for failure to pay the dues or @ 1% of the tax per month, whichever is higher, subject to the condition that amount of penalty payable in terms of this Section shall not exceed 50% of the tax payment - Since there is no specific mandate under Section 76 ibid that equal amount of penalty can be imposed, the impugned order imposing penalty of equal amount of tax is not sustainable under law. The impugned order is confirmed to the extent of demand of service tax of ₹ 1,41,653/- along with interest - For quantifying the penalty under Section 76 ibid, the matter is remanded back to the original authority for proper computation of the quantum of penalty - Appeal allowed by way of remand.
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