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TMI Blog2016 (3) TMI 717X X X X Extracts X X X X X X X X Extracts X X X X ..... 1944 for failure to take service tax registration. He referred to page 22 of the paper book and submits that the show cause notice was issued on 8.1.2004. He submits that, on the date of SCN, the relevant provision under Section 77 (1) (a) prescribed the maximum penalty imposable for failure to take registration as Rs. 10,000/-, whereas the adjudicating authority has invoked pre-amended Section 77 (1) (a). He further submits that Section 77 (1) (a) was amended w.e.f. 10.5.2013 wherein penalty of Rs. 200/- per day has been deleted instead the maximum penalty of Rs. 10,000/- was prescribed. Therefore, he pleads that the penalty under Section 77 (1) (a) that can be imposed is only Rs. 10,000/-. 2.1 As regards penalty under Section 78, he subm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d on the date of show cause notice is reproduced as under :- (1) Any person, - (a) who is liable to pay service tax or required to take registration, fails to take registration in accordance with the provisions of Section 69 or rules made under this Chapter shall be liable to a penalty which may extent to ten thousand rupees; This amended Section came into effect from 10.5.2013 and the SCN was issued on 8.1.2014. Therefore, the amended Section 77 (1) (a) is applicable to the present case and maximum penalty is imposable is Rs. 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 Rs. 200/- per day till payment of service tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e service tax, interest and reduced penalty and complied the provisions of Section 78 of Finance Act and eligible for the reduced penalty as envisaged in the second proviso to Section 78. The impugned order confirming equivalent penalty is set aside and penalty is restricted to 25% which already stands paid by appellant along with interest. 7. In view of the foregoing discussions, I hold that - (a) penalty under Section 77 (1) (a) of the Finance Act is restricted to Rs. 10,000/- (Rupees Ten thousand only) (b) The appellant is eligible for the reduced penalty of 25% as per the second proviso of Section 78 of the Finance Act which is already paid. The appeal is partly allowed in the above terms. (Dictated and pronounced in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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