TMI Blog2014 (12) TMI 87X X X X Extracts X X X X X X X X Extracts X X X X ..... xhibition Service - Held that:- Since the appellant had paid the service tax of ₹ 2,12,011/- in respect of Business Exhibition Service even before the adjudication alongwith interest and since no option had been given in the adjudication order in terms of proviso to Section 78 of the Finance Act, 1994 to pay lower penalty by paying the same within a period of 30 days from the date of communication of order, in accordance with the judgment of Hon’ble Delhi High Court in the case of K.P. Pouches (P) Ltd. vs. Union of India (supra), the benefit of lower penalty in terms of proviso to Section 78 cannot be denied and accordingly the penalty under Section 78 is reduced to 25% of the service tax demand upheld - Penalty u/s 77 is reduced to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction 78 ibid, another penalty of ₹ 200/- per day for every day till the date of actual compliance under Section 77 was imposed under Section 77 ibid for contravention of the provisions of this Finance Act, 1994 and the Rules made thereunder. Out of the total service tax demand of ₹ 7,24,98,866/- confirmed against the appellant, the demand of ₹ 2,12,011/- is on account of Business Exhibition Service and the remaining demand for the period from 16/06/05 to 30/09/08 pertains to Club and Association Service. Against this order of the Commissioner, this appeal has been filed. 2. Heard both the sides. 3. Shri B.L. Narasimhan, Advocate, the learned Counsel for the appellant, pleaded that the appellant do not contest of ser ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion alongwith interest and since no option had been given in the order in terms of proviso to Section 78 of the Finance Act, 1994 to pay lower penalty by paying penalty equal to 25% of the service tax demand during the period of 30 days from the date of communication of the order-in-original, in terms of the judgment of Hon ble Delhi High Court in the case of K.P. Pouches (P) Ltd. vs. Union of India reported in 2008 (228) E.L.T. 31 (Del.), the penalty imposable would be only 25% of the service tax demand. Shri Narasimhan, thus, pleaded that only the service tax demand of ₹ 2,12,011/- which has not been contested can be upheld and the penalty of only 25% of this amount would be imposable on the appellant under Section 78 and as regards ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der in terms of proviso to Section 78 of the Finance Act, 1994 to pay lower penalty by paying the same within a period of 30 days from the date of communication of order, in accordance with the judgment of Hon ble Delhi High Court in the case of K.P. Pouches (P) Ltd. vs. Union of India (supra), the benefit of lower penalty in terms of proviso to Section 78 cannot be denied and accordingly the penalty under Section 78 is reduced to 25% of the service tax demand upheld i.e. 25% of ₹ 2,12,011/-. As regards penalty on the appellant under Section 77, the penalty for any contravention of the provisions of the Act or the Rules made thereunder has to be imposed only under the provisions in force at the time of offence and since during the per ..... X X X X Extracts X X X X X X X X Extracts X X X X
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