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2019 (6) TMI 1245 - AT - Service TaxBenefit of reduced penalty - penalty not deposited by assessee - whether the Commission (Appeals) was right in giving the benefit of reduced penalty of 25% under Section 78 of the Finance Act, 1994 even when the penalty has not been deposited by the respondent assessee? - HELD THAT:- The assessee can get the benefit of reduced penalty of 25% of the service tax determined, provided the assessee fulfills the following two conditions as per the proviso to Section 78(1) of the Finance Act, 1994, namely: (i) that the determined amount of service tax along with interest is paid within a period of one month from the date of issue of determining order; and (ii) that the penalty imposed is equal to the amount of service tax confirmed, however, if the assessee deposits the 25% of penalty within a period of one month, the amount of 100% or equal amount of penalty can be reduced to 25%. The learned Commissioner (Appeals) erred in determining the quantum of penalty at 25% of the service tax demand and wrongly extended the benefit to the assessee for 25% of mandatory equal amount of penalty as provided under section 78 of Finance Act, 1994. Penalty set aside - appeal dismissed - decided against Revenue.
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