9911796707
TMI Blog2023 (5) TMI 524X X X X Extracts X X X X X X X X Extracts X X X X ..... ry Service' and were not paying the same. SCN dated 22.11.2007 was issued to the appellant seeking to confirm the Service Tax of Rs.55,641/- along with penalties under Section 76,77 and 78 of the Finance Act, 1994. The Original Authority vide Order dated 30.11.2009 confirmed Service Tax of Rs.34,572/- and imposed penalty under Section 76; penalty of Rs.34,572/- under Section 78 and penalty of Rs.1000/- under Section 77. The Appellate Authority vide Order dated 03.05.2011 has upheld the order but reduce the penalty to the extent of the penalty deposited by the appellants. 2. Shri Surjeet Bhadu, learned Counsel for the appellants submits that M/s SIFY has already discharged Service Tax liability on the gross amount charged to the customer; s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... argued on merits the appeal made by the Counsel during the course of argument was to the fact that balance of penalty be waived. As the appellants did not insist on the merits of the case, we are not going into the same. Moreover, looking into the decision of this Bench in the case of M/s City Cable Opera (Supra), there is no issue left on the merits of the case. Coming to the issue of penalty, the Original Authority as well as the Appellate Authority have confirmed all the penalties particularly under Sections 76 and 78 for the reason that the amendment made by Finance Act, 2008 making Sections 76 & 78 mutually exclusive is not retrospective. 5. We find that the jurisdictional High Court in the case of Pannu Property Dealers, Ludhiana (S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder Section 76 and 78 can be seen to be mutually exclusive even before the amendment. 7. Moreover, it was the plea of the appellants that the benefit of Section 80 of the Finance Act, 1994 was not given to them. Section 80 of the Finance Act, 1994 reads as under: 80. Penalty not to be imposed in certain cases Notwithstanding anything contained in the provisions of Section 76 [section 77 or section 78], no penalty shall be imposable on the assessee for any failure referred to in the said provisions if the assessee proves that there was reasonable cause for the said failure. We find that in the facts and circumstances of the case and looking into the fast changes that were coming in the Service Tax law during the relevant period, it can ..... X X X X Extracts X X X X X X X X Extracts X X X X
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