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2017 (4) TMI 949 - CESTAT HYDERABADImposition of penalty u/s 78 of FA, 1994 - It was revealed that respondents had actually received higher taxable value than that was disclosed in their returns. As it appeared to department that respondents were not co-operating a further search was conducted in their premises on 27.07.2006 and certain documents were recovered - Held that: - the respondent has furnished details to the department only after repeated intimations. Even after that, the department was able to collect proper data for quantification of the demand of service tax only after conduct of search in the premises of the respondent and also after approaching the clients of the respondent. This itself is sufficient evidence to establish that the respondent is guilty of suppression of facts - The law laid u/s 78 of the FA, 1994 mandates imposition of equal penalty when suppression of facts are established. The adjudicating authority imposed penalty of ₹ 35 lakhs which in my view is in excess of that which is allowed in the said provision. However, the respondent is liable to pay equal penalty which is ₹ 32,87,607/- of the service tax confirmed in appeal no. 258/2009 and ₹ 12,26,432/- in appeal no. 259/2009 - appeal allowed - decided in favor of Revenue.
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