TMI Blog2007 (11) TMI 82X X X X Extracts X X X X X X X X Extracts X X X X ..... r sec. 78 – Penalty modified - ST/183/2007-SMB - 1650/2007-SM(BR)(PB), - Dated:- 2-11-2007 - Justice R.K. Abichandani, President [ORDER]- Per Justice R.K. Abichandani: The Revenue challenges the order dated 15.4.2007 setting-aside the penalties imposed by the adjudicating authority on the respondent under Sections 76 and 78 of Chapter V of the Finance Act, 1994. 2.The appellant was e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e on the ground that the decision of the Larger Bench in CCE Delhi Vs. Machino Montel Industries Ltd. , reported in 2004 (168) ELT 466 was reversed by the High Court of Punjab and Haryana by its decision reported in 2006 (4) STR 177 and, therefore, the very basis on which the impugned order was made does not exist. 4.In the context of the provisions of Section 11 AC which is similar to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ions were not recorded was admitted and the amount of Rs.2,65,200/- was deposited as service tax on 30.11.2004. All this could happen only after the preventive staff of the Central Excise Commissionerate visited the premises of the respondent and detected the breaches committed involving the said amount of service tax. Obviously, therefore, the provisions of Sections 76 and 78 were clearly attr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the judgment, the Hon'ble High Court held that, once the case is covered by the provisions of Section 11A mere deposit prior to issuance of show cause notice under Section 11A of the Central Excise Act, 1944 will not necessarily negate the situation mentioned therein. This would mean that if the duty is deposited prior to the issuance of the show cause notice, there would not be any automatic wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... per penalty, in the facts and circumstances, would be an amount equal to the tax evaded. The impugned order of the adjudicating authority is, therefore, restored with the modification that the penalty imposed under Section 78 will stand reduced to Rs.1,66,220/- being the amount equal to the service tax evaded. No separate penalty is warranted under Section 76 of the Act in view of the penalty im ..... X X X X Extracts X X X X X X X X Extracts X X X X
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