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2017 (6) TMI 473 - CESTAT CHANDIGARHPenalty u/s 76 and 78 of FA - appellant has paid the entire amount of service tax along with interest, before issuance of SCN - Held that: - the appellant is liable to penalty only u/s 78 of the Act, in terms of the decision of the Hon'ble Punjab & Haryana High Court in the case of CCE, Ludhiana vs. Pannu Property Dealers [2010 (7) TMI 255 - PUNJAB AND HARYANA HIGH COURT], wherein it has been held that simultaneous penalties cannot be imposed u/s 76 and 78 respectively - penalty u/s 76 set aside. Considering the fact that appellant had paid the entire amount of service tax along with interest before issuance of SCN and no option has been given in the impugned order to pay penalty to the tune of 25% of the amount of service tax confirmed, in terms of proviso to Section 78 of the Act, the penalty is required to be reduced to 25% of the service tax confirmed against the appellant. Appeal allowed - decided partly in favor of appellant.
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