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2018 (9) TMI 580 - AT - Service TaxBusiness Auxiliary Service - appellant are engaged in the activity of job work such as Grinding, Boring and Nitriding work on the goods supplied by their principal - penalty - Held that:- the appellant’s activity such as Grinding, Boaring and Nit Riding work on the semi finished goods supplied by their principal is amount to production even though not a manufacturing activity in terms of Section 2 (f) of the Central Excise Act, 1944. The production activity was very much covered under Sub Clause (v) of Clause (19) under Business Auxiliary Service. Therefore, during the relevant period the activity of production of goods on behalf of client was taxable - demand upheld. Penalty u/s 76 and 78 of FA - Held that:- As of now it is a settled Law that penalty Under Section 76 & 78 cannot be imposed simultaneously. Therefore, the penalty imposed Under Section 76 is set aside - As regard, the penalty imposed Under Section 78, the adjudicating authority has not given the option of 25% penalty to the appellant in the Order in Original. The penalty reduced to 25% under the proviso to Section 78 subject to condition that total amount of Service Tax, interest and penalty of 25% stand paid within a period of one month from the date of receipt of this order. Appeal allowed in part.
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