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2019 (1) TMI 978 - AT - Service TaxQuantum of Penalty u/s 78 of FA - Commercial Training or Coaching Centre Service - non-payment of service tax - Held that:- Section 11AC of Central Excise Act is relevant for the purpose. The same can be read in view of Section 83 of the Finance Act. The perusal thereof makes it clear that whenever excise duty of the service tax has not been paid which is the admitted fact of the present Appeal, the person who is liable to pay the tax shall be liable to pay the penalty as well at such rates as mentioned in the respective Sections i.e. 76-78 of the Finance Act, 1994 - The further perusal of Section 11AC makes it clear that the penalty so described under said Sections can be reduced to nil in case the duty /tax so demanded is paid even prior the issuance of the SCN. It stands reduced to 25% only in the case where the payment of the tax is made within 30 days of the issuance of the SCN. In the present case though the adjudicating authority failed to mention the entitlements of the assessee to the benefit of reduced penalty, but the fact remains is that when appellant herein is not entitled to the benefit of reduced penalty being not paid within 30 days of SCN, hence, no mention of this benefit in Order-in-Appeal is not relevant - penalty has already been reduced to 50% - appeal dismissed - decided against appellant.
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