2010 (5) TMI 311 - AT - Service Tax

Penalty - The dispute precisely by revenue is that dropping of penalty under section 76 is not permissible and granting concession under section 78 is equally not sustainable. Commissioner (Appeals) giving the findings that penalties under section 76 and 78 are independent of each other and concessional penalty under section 78 is mandatory as per forth proviso to section 78 granted concession u/s 78 and also dropped penalty u/s 76. Held that - there is no infirmity in impugned order.

Summary

The Appellate Tribunal CESTAT, New Delhi upheld the dropping of penalty under section 76 and granting concession under section 78 in a disputed case. The tribunal found the decision by the learned Commissioner (Appeals) to be valid and rejected the revenue's appeal to reverse the order. Penalty under sections 77 and 78 are considered independent of each other, with concessional penalty under section 78 being granted based on specific provisions.