9911796707
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Issues:
Waiver of pre-deposit of penalties imposed under Sections 76 & 77 of the Finance Act, 1994 by the Commissioner of Central Excise in an Order-in-Revision. Analysis: The judgment deals with an application seeking waiver of pre-deposit of penalties amounting to Rs. 1.25 lakhs imposed by the Commissioner of Central Excise on the appellants under Sections 76 & 77 of the Finance Act, 1994. The original authority had dropped proceedings to recover service tax on 'security services' rendered by the appellants to a client, finding that the tax due had been paid before the show-cause notice was issued. However, the Commissioner of Central Excise, in a review, imposed penalties without considering the liability of the appellants under Sections 76 & 77 of the Act. The learned Counsel for the appellants argued that the penalties imposed in the review proceedings were beyond the scope of the show-cause notice and not sustainable in law. The Commissioner had allegedly exceeded the scope of the proceedings by imposing penalties unrelated to the original issue of non-payment of service tax by the client. The learned Jt. CDR concurred with the Counsel's factual submissions. After considering the arguments from both sides, the Tribunal found that the penalties imposed in the revision proceedings lacked the necessary backing from proposals in the show-cause notice that initiated the proceedings. Consequently, the Tribunal ordered a complete waiver of pre-deposit of the penalties imposed and stayed the recovery pending appeal. In conclusion, the Tribunal granted the waiver of pre-deposit of penalties imposed by the Commissioner of Central Excise in the revision proceedings, as the penalties were deemed to be unsupported by the original show-cause notice and beyond the scope of the proceedings initiated against the appellants.
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