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2023 (2) TMI 480 - AT - Service TaxLevy of penalty under Section 76,77 & 78 of FA - demand of service tax was confirmed under Section 73(A) of the Finance Act, 1994 where the respondent has collected service tax from their customer and not deposited to the government - HELD THAT:- From the reading of sections 76 & 78, it is clear that penalty under such sections can be imposed only when demand of service tax is confirmed under Section 73(1) of the Finance Act, 1994 - In the present case, the service tax demand was confirmed under Section 73(A) therefore, in case of confirmation of demand under Section 73(A) there is no application of Section 76 and 78 for imposition of penalty. Therefore, the adjudicating authority has rightly not imposed the penalty under Section 76 & 78. However, the respondent has not followed the provision such as non-obtaining the service tax registration nor deposited the service tax collected from their customer on their own therefore, in terms of Section 77 they are liable to pay penalty of Rs.10,000/-. Thus, penalty of Rs.10,000/- is imposed on the respondent - appeal of Revenue allowed partly.
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