2022 (11) TMI 438 - AT - Service Tax
Levy of Penalty u/s 76, 77 and 78 of FA - Sale of Space and Time for Advertisement - appellant were neither registered with service tax department nor they were paying service tax and were also not filing service tax returns - HELD THAT:- The appellant have not disputed the tax liability along with applicable interest. In this position, the issue to be decided before us is only penalties imposed under Section 76, 77 and 78.
Penalty under Section 76 of FA - HELD THAT:- The simultaneous penalty is not imposable as settled by the Hon’ble Gujarat High Court in the case of M/S RAVAL TRADING COMPANY VERSUS COMMISSIONER OF SERVICE TAX [2016 (2) TMI 172 - GUJARAT HIGH COURT], therefore, the penalty imposed under Section 76 is not sustainable. Hence, the same is set aside.
Penalty under Section 77 and 78 of FA - HELD THAT:- The entire case was made out on the search conducted by the departmental officer in the premises of the appellant, the appellant have never disclosed their activity before the department, therefore, they suppressed the fact from the department accordingly, the penalty under section 77 and 78 were rightly imposed. Therefore, the penalty imposed under Section 77 and 78 is upheld.
Appeal allowed in part.