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2016 (4) TMI 68 - CESTAT KOLKATAImposition of penalties - Section 76 and 78 of the Finance Act, 1994 - Provider of construction services - Service tax on construction services during the relevant period was newly introduced and the Appellant was ignorant about the prevailing law. Also the service recipient did not guide them properly regarding payment of service tax - Held that:- the service tax on construction services were paid by the appellant on certain months but no service tax liability was discharged for certain other months when considerations were received from service recipient, therefore, the appellant was well aware of the service tax liability on the services rendered by them. Also no financial hardships were explained by the appellant to suggest that service tax could not be paid due to financial hardships. It is also observed that Show Cause Notice in this case was issued on 12.03.2008 which is prior to the date of amendment made in Section 78 of the Finance Act, 1994, therefore both the penalties under section 76 and 78 of the Finance Act, 1994 are imposable upon the appellant. No option for payment of 25% reduced penalty under section 78 ibid was extended. It is a well settled law that 25% option of reduced penalty can even be extended at the appellate stage when no such option was extended by the lower authorities. Accordingly, the appellant is extended the option of payment of 25% reduced penalty under section 78 ibid if the same is paid within one month from the date of receipt of this Order. - Decided partly in favour of appellant
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