TMI Blog2019 (6) TMI 829X X X X Extracts X X X X X X X X Extracts X X X X ..... ice and hence the same is not taxable. Commission income received in relation to the business of textile processing - applicability of N/N. 14/2004-ST dated 10.09.2004 - HELD THAT:- Undisputedly the commission is related to textile processing business which is clearly exempted by Notification No. 14/2004-ST, therefore, the said demand is also not payable. Demand of penalty u/s 76 and 78 - service tax alongwith interest paid - HELD THAT:- As held by the Hon'ble Gujarat High Court in the case of M/S RAVAL TRADING COMPANY VERSUS COMMISSIONER OF SERVICE TAX [ 2016 (2) TMI 172 - GUJARAT HIGH COURT] , simultaneous penalty under Section 76 and 78 cannot be imposed. Accordingly, the penalty imposed under Section 76 is set-aside. As r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ting the imposition of penalty under Section 76 and 78 of the Finance Act, 1994. 2. Shri Darshan Belani, Ld. Chartered Accountant appearing on behalf of the appellant submits that as regard the first demand of ₹ 33,176/-, it is related to export of service which the appellant have provided as Business Auxiliary Service to their China based client and received the consideration in convertible foreign exchange and therefore the said service is not taxable. Regarding the commission income received in relation to textile processing, the service tax of ₹ 89,350/- is not chargeable being exempted vide Notification No. 14/2004-ST dated 10.09.2004. As regards the demand of ₹ 84,270/-, he fairly concedes that this tax is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Trading Company vs. CST 2016 (42) STR 210 (Guj.), simultaneous penalty under Section 76 and 78 cannot be imposed. Accordingly, the penalty imposed under Section 76 is set-aside. As regards the penalty imposed under Section 78, we find that both the lower authorities have not extended benefit of option to pay 25% under the proviso to Section 11AC, therefore, in the light of Hon'ble Supreme Court judgment in the case of CCE, Daman vs. RA Shaikh Paper Mills Pvt. Limited 2016 (335) ELT 203 (SC) the appellant is entitled for the option to 25% penalty. Accordingly, the penalty is reduced to 25% subject to the condition that entire amount of tax of ₹ 84,270/- along with interest and 25% penalty of said service tax is pai ..... X X X X Extracts X X X X X X X X Extracts X X X X
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