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2017 (5) TMI 288 - AT - Service TaxPenalty - adjudicating authority has held that the services rendered by the appellant is covered under Erection, Commissioning and Installation Service and rejected the contention of the appellant that the services are Works Contract Service provided to their clients - whether the penalty imposed u/s 76 and 78 is correct or otherwise? - Held that: - the claim of the appellant that the execution of the various projects by them under works contract is not negated by the lower authority on factual matrix. Since the tax under ‘erection, commissioning and installation’ charges are not payable by the appellant for the period prior to 01/06/2007 as the contract executed by them being ‘works contract’, the question of imposing penalty u/s 76 and 78 of the FA, 1994 does not arise - The law has been settled by the Hon’ble Punjab & Haryana High Court in the case of Ajay Kumar Gupta [2015 (5) TMI 566 - PUNJAB & HARYANA HIGH COURT], wherein their Lordships held that once an assessee was not liable to pay tax under the provisions of Section 68 of the Finance Act, 1994, as he was not providing any taxable service at that point of time, penalty imposable u/s 76 does not arise - penalty set aside - appeal allowed - decided in favor of assessee.
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