TMI Blog2016 (3) TMI 717X X X X Extracts X X X X X X X X Extracts X X X X ..... ct, 1994 - Entitlement for reduced penalty of 25% which is paid within 30 days from the date of communication of the OIO as per second proviso of Section 78 of the Finance Act as OIO received on 6.6.2014 and the 30th day falls on 6.7.2014 which was being Sunday and appellants have paid the entire service tax along with interest and reduced penalty on Monday 7.7.2014, the next working day - Held that:- the certificate issued by City Union Bank dt.11..7.2014 certifies that DD ws issued in favour of Asst. Commissioner of Central Excise and Service Tax payable at Thanjavur on 05.07.2014. The 30th day i.e. 6.7.2014 being Sunday, so as per the General Clauses Act, the next working day, is to be considered as relevant date for payment purpose. A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eleted instead the maximum penalty of ₹ 10,000/- was prescribed. Therefore, he pleads that the penalty under Section 77 (1) (a) that can be imposed is only ₹ 10,000/-. 2.1 As regards penalty under Section 78, he submits that they are entitled for reduced penalty of 25% which is paid within 30 days from the date of communication of the order-in-original. He submits that the adjudication order dt. 4.6.2014 was received by them on 6.6.2014. From the date of receipt, the 30th day falls on 6.7.2014 which is being Sunday and on the very next working day, i.e. on 7.7.2014, they have deposited the entire service tax amount, interest and reduced penalty. He also submits that Demand Draft was taken on 5.7.2014 in the name of Asst. Comm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ximum penalty is imposable is ₹ 10,000/-. Whereas I find both the adjudicating authority and the appellate authority have followed pre-amended Section 77 (1) (a) wherein penalty prescribed was ₹ 200/- per day till payment of service tax. In view of the statutory provisions, I hold that appellants are liable for penalty for failure to take registration and the penalty is restricted to ₹ 10,000/- in terms of the amended Section 77 (1) (a) of the Finance Act. 6. As regards Section 78 penalty, the adjudicating authority has imposed equivalent penalty. Appellant's contention is that they are covered by the second proviso of Section 78 of the Finance Act of the reduced penalty of 25% whereas the LAA has not allowed the be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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