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2010 (7) TMI 167 - GUJARAT HIGH COURT
Penalty- Whether the penalty under Section 76 of the Finance Act, 1994 can be reduced below the limit prescribed by the section? The adjudicating authority confirmed demand to the tune of Rs.93,621/- towards short paid service tax and imposed penalty of Rs.20,000/- under Section 76 of the Act with penalty of Rs.95,000/- under Section 78 of the Act. Commissioner (Appeals) deleted the entire penalty under Section 76 of the Act on the footing that penalty had been levied also under Section 78 of the Act and thereafter reduced the penalty under Section 78 of the Act from Rs.95,000/- to Rs.94,000/-. The same was carried in appeal by respondent-assessee. Tribunal vide order dated 03.09.2007 allowed the appeal and remanded the matter back to the adjudicating authority. On the fresh round adjudicating authority again confirm penalty u/s 76 and 78. Held that- the impugned order of Tribunal dated 26.12.2008 is hereby quashed and set aside and appeal stand restored. The question is accordingly answered in the negative.