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2016 (12) TMI 480 - CESTAT AHMEDABADImposition of penalty u/s 76 and 78 of FA - the entire amount of duty has been paid before issuance of Show Cause Notice - the judgment of Hon'ble Gujarat High Court, Raval Trading Co. Vs Commissioner of Service Tax [2016 (2) TMI 172 - GUJARAT HIGH COURT], referred to - Held that: - I find that in the case of Raval Trading Co. Vs Commissioner of Service Tax, Simultaneous penalties under Sections 76 and 78 was levied and it was held that we answer the additional question in favor of the appellant-assessee and delete the penalty under Section 76 of the Finance Act, 1994, while upholding the penalty imposed under Section 78 and other penalties. Therefore, simultaneous penalty under Sec. 76 and Sec. 78 of Finance Act, 1994 cannot be imposed on the Appellant. Consequently, penalty imposed under Sec.76 is set aside. As regards the benefit of 25% of penalty on payment of duty and interest, the issue is covered by the decision of Hon'ble Gujarat High Court in the case of Santosh Textile Mills [2011 (3) TMI 1649 - GUJARAT HIGH COURT] and Appellant would be entitled to discharge 25% of the penalty imposed under Section 78 of Finance Act, 1994 subject to fulfillment of the conditions laid down therein - However, for the purpose of ascertaining the quantum of interest, and fulfilment the condition laid down under Sec. 78 of the said Act, the matter needs to be remanded to the Adjudicating Authority. Appeal allowed by way of remand.
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