TMI Blog2011 (2) TMI 573X X X X Extracts X X X X X X X X Extracts X X X X ..... perative to the investigation - Penalty proceeding being independent of adjudication, levy of penalty to the tune of 25 per cent of the service tax demand, following the judgment of the Hon'ble High Court in K.P. Pouches (P.) Ltd. v. Union of India[2008 -TMI - 30328 - HIGH COURT OF DELHI], would be justified - Decided in favour of assessee. - ST/761 OF 2007 - ST/70 OF 2011 - Dated:- 28-2-2011 - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 994. That invited penal action under sections 78 and 76. Therefore, the adjudication order is warranted to be restored reversing the appellate order which granted immunity to the respondents. 2. Learned Counsel, on the other hand, submits that the respondents cooperated with the investigation and paid the taxes along with interest before adjudication was completed. There is no mala fide on the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Haryana High Court, would be justified. These judgments have been noticed in the recent judgment of Hon'ble High Court of Punjab Haryana in the case of CCE v. Bajaj Travels [2011] 30 STT 293. We also notice that no opportunity for exercise of option to pay the demand within stipulated period was given to the respondent following the ratio laid down in the above judgments. For benefit of reading, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the respondent be given option to comply to law to avail concession in penalty restricting to 25 per cent of the service tax demand. First appellate order is modified accordingly in respect of penalty under section 78. 6. So far as the penalty under section 76 is concerned, that shall be restricted from the date of default till the making of the deposit of the service tax and the first appellat ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
