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TMI Blog2018 (10) TMI 646X X X X Extracts X X X X X X X X Extracts X X X X ..... the Act. It is further seen that Commissioner (Appeals) has set aside the penalty imposed by the Original Adjudicating Authority under Section 76. Further the Appellate Authority, while confirming the penalty under Section 78 has already given an option to the appellant to avail the opportunity to the reduced penalty of 25% the service tax if the same is deposited within a period of 30 days from the date of communication of the Appellate order. The appellant have not availed this option. 2. As per facts on record, the appellant is engaged in providing construction service as also "Erection, Commissioning & Installation Service" to M/s BPCL. For the said purpose they took the registration on 07th November, 2008. However, the appellant neit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , as also proposing imposition of penalties. The said show cause notice was adjudicated by Additional Commissioner of Central Excise, Kanpur, who confirmed the demand to the extent of Rs. 7,26,095/- and imposed penalty of an identical amount in terms of Section 78 of the Finance Act, 1994. In addition, penalties under Section 76 and 77 were also imposed. 5. On appeal against the above order, Commissioner (Appeals) upheld the same but for the reduction in quantum of service tax amount to the extent of Rs. 7,03,470/-. Consequently penalty under Section 78 was also reduced. He further upheld the imposition of penalty of Rs. 5,000/- under Section 77 of the Act but set aside the penalty imposed under Section 76. He also extended an option to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appellant to deposit the tax. In such a scenario, imposition of penalty upon the appellant is justified. 8. After carefully considering the submission by both the sides and after going through the impugned order, we find that there is no dispute about the facts. The appellant got themselves registered under the service tax, vide registration dated 07/11/2008. In spite of getting themselves registered, appellant did not file ST-3 returns nor deposited the service tax in question. The appellant's plea that the service tax was not being deposited on account of financial difficulties being faced by them cannot be appreciated inasmuch it was the legal obligation on the part of the assessee to deposit the service tax in time. At least minimum re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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