TMI Blog2018 (5) TMI 1425X X X X Extracts X X X X X X X X Extracts X X X X ..... rading Company v. Commissioner of Service Tax [2016 (2) TMI 172 - GUJARAT HIGH COURT], where it was held that Section 76 of the Finance Act, 1994, would cover only the cases of nonpayment of service tax which are not related to fraud, collusion, willful misstatement, suppression of facts or contravention of any of the provisions of the said Chapter or the rules made thereunder with the intent to e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as committed substantial error of law by quashing and setting aside the OIO dated 6/5/2011 holding that simultaneous penalty under section 76 and 78 of the Finance Act, 1994 cannot be imposed? The sole question thus is whether simultaneous penalties under sections 76 and 78 of the Finance Act, 1994 could have been imposed. This issue is already covered by judgment of Division Bench of thi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x which, in any case, would not exceed fifty percent of the service tax payable. 10. The tenor, background and the purpose for which the penalty could be imposed under Section 78 of the Finance Act, 1994, is entirely different than in case of Section 76 of the Finance Act, 1994. However, the language of Section 76 did not specifically exclude the situation; otherwise covered under Section 78 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oviso and the relevant position of the two statutory provisions both pertaining to penalty, we are convinced that the proviso was in the nature of clarificatory amendment and not creating a liability for the first time. Even without the aid to this further proviso to Section 78, one entire plausible view was that the situation envisaged under Section 76 of the Finance Act, 1994, would exclude thos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Commissioner of Service Tax, Bangalore Vs. Motor World reported in 2012(27) S.T.R.225 (Kar.). Learned counsel for the department however brought to our notice judgment of Kerala High Court in case of Asstt. CCE Ors. v. V. Krishna Poduval ors (W.A. Nos 715 and 717 of 2005, judgment dated 20.10.2005). However when decision of this Court is already rendered, we would be bound by such de ..... X X X X Extracts X X X X X X X X Extracts X X X X
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