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2019 (1) TMI 324 - HC - Service TaxSimultaneous Penalty u/s 76 and 78 of FA - Non-payment of Service Tax - Commercial construction Services - tax alongwith interest and part penalty paid before adjudication - Held that:- Various High Courts had taken conflicting views in the question of simultaneous penalties under Section 76 and Section 78. The petitioner's view is supported in as much as the Act itself got amended at a later date to the effect that both penalties cannot be imposed simultaneously. Therefore, in all fairness the penalty imposed under Section 76 of the Act is liable to be set aside. The entire tax along with interest and penalty at 25% of tax demand is paid immediately upon issue of SCN and before Adjudication. So some leniency is warranted in the case. The case was adjudicated on 20.06.2008. The entire demand was paid on 12.05.2008. The interest and penalty at 25% of the demand were paid on 19.07.2008. Therefore, all the dues came to be paid before one month of the date of issue of the adjudication Order. Penalty imposed under Section 76 of the Finance Act, 1994 is liable to be set aside - the payment of the full demand along with interest and the payment of penalty @ 25 % of the duty demanded within/before 30 days of the issue of OIO discharges the petitioner of all the obligations cast upon him under the law - petition allowed in part.
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