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In place of arriving ache din assessee misses good old days

Service Tax - By: - Pradeep Jain - Dated:- 2-3-2015 Last Replied Date:- 30-12-1899 - The 2015-2016 Finance Budget is was presented by Hon ble Finance Minister, Arun Jaitley on 28th February 2015. This budget was show time for the NDA Government that whether the lucrative promises made by the Prime Minister in his election campaigns were just the mushrooming for gaining the votes or he actually aimed at bringing the reforms. The country witnessed no such reforms in its nomenclature in the last 9 .....

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nges brought therein which has some sugary benefits extended to the assessee and at the same time some major benefits being snatched from them. Prior to budget 2015:- Section 78 earlier used to be:- [(1) Where any service tax has not been levied or paid or has been short-levied or short-paid or erroneously refunded, by reason of - (a)fraud; (b)collusion; (c)willful mis-statement; or (d)suppression of facts; or (e) contravention of any of the provisions of this Chapter or of the rules made thereu .....

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ified records, penalty shall be reduced to fifty per cent. of the service tax so not levied or paid or short-levied or short-paid or erroneously refunded: Provided further that where such service tax and the interest payable thereon is paid within thirty days from the date of communication of order of the Central Excise Officer determining such service tax, the amount of penalty liable to be paid by such person under the first proviso shall be twenty-five per cent. of such service tax: Provided .....

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x determined to be payable is reduced or increased by the Commissioner (Appeals), the Appellate Tribunal or, as the case may be, the court, then, for the purposes of this section, the service tax as reduced or increased, as the case may be, shall be taken into account: Provided that in case where the service tax to be payable is increased by the Commissioner (Appeals), the Appellate Tribunal or, as the case may be, the court, then, the benefit of reduced penalty under the second proviso to sub-s .....

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ared that any amount paid to the credit of the Central Government prior to the date of communication of the order referred to in the second proviso to sub-section (1) or the first proviso to sub-section (2) shall be adjusted against the total amount due from such person. Subsequent to budget 2015:- For section 78 of the 1994 Act, the following section shall be substituted, namely:- 78. (1) Where any service tax has not been levied or paid, or has been short-levied or short paid, or erroneously r .....

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: Provided that where such service tax and interest is paid within a period of thirty days of - (i) the date of service of notice under the proviso to sub-section (1) of section 73, the penalty payable shall be fifteen per cent. of such service tax; (ii) the date of receipt of the order of the Central Excise Officer determining the amount of service tax under sub-section (2) of section 73, the penalty payable shall be twenty-five per cent. of the service tax so determined: Provided further that .....

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if such service tax, interest and reduced penalty so payable, is paid within a period of thirty days from the date of receipt of the order by which such modification is made. . Two sides of substituted section 78:- As it is said that there are two sides of a coin, likewise, the amendment made in the section 78 also has both positive and negative effect. The good side of the amendment is that a further additional benefit has been extended wherein if the assessee pays the service tax and interest .....

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nt to the earlier benefit of reduced penalty to the extent of 25% of the duty if the assessee paid service tax and interest within a period of 30 days from the date of communication of the order. However, the negative side of the amendment overpowers the positive benefit as extended to the assessees. The substituted amendment seeks to snatch the following benefits from the assessee:- Earlier in one of the proviso of section 78 if the transaction was traceable in books of accounts then waiver of .....

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rs covered by the notice or during the last preceding financial year, the period of 30 days could be extended to 90 days. Now no such benefit has been extended in the new section which again burdens a small service provider to pay the penalty within thirty days anyhow to avail the benefit of reduced penalty. One point that is worth noting is that the amended section 76 and 78 has upheld the position that the penalties under section 76 and 78 of the Act, 1994 are mutually exclusive. It is submit .....

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CISE VS PANNU PROPERTY DEALERS, LUDHIANA [2010 (7) TMI 255 - PUNJAB AND HARYANA HIGH COURT] COMMISSIONER OF CENTRAL EXCISE, CHANDIGARH-I VS M.S COOL TECH CORPORATION, CHANDIGARH [2010 (12) TMI 78 - PUNJAB AND HARYANA HIGH COURT ] COMMISSIONER OF CENTRAL EXCISE COMMISSIONERATE VS M/S FIRST FLIGHT COURIER LTD. [2011 (1) TMI 52 - High Court of Punjab and Haryana ] UNITED COMMUNICATION UDUPI VERSUS COMMISSIONER OF C. EX., MANGALORE-III [2011 (10) TMI 163 - KARNATAKA HIGH COURT] COMMISSIONER OF C. EX .....

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