2016 (11) TMI 1460 - AT - Service Tax

Simultaneous penalty u/s 76 and 78 prior to 16.05.2008 - Held that - Even if technically, the scope of Sections 76 and 78 is different, penalty under Section 76 may not be justified if penalty had already been imposed under Section 78 - appeal dismissed - decided against Revenue.

Summary

Issues involved:
1. Imposition of penalties under Sections 76 and 78 simultaneously.
2. Interpretation of the law prior to 16.05.2008 regarding simultaneous penalties.

Analysis:

Issue 1: Imposition of penalties under Sections 76 and 78 simultaneously

The Adjudicating Authority imposed penalties under Section 77 and Section 78 but refrained from imposing any penalty under Section 76. The Commissioner (Appeals) rejected the department's appeal, stating that penalties under Sections 76 and 78 cannot be invoked simultaneously even before 16.05.2008. The Tribunal reviewed the impugned order and upheld the decision, citing a judgment by the High Court of Punjab and Haryana in the case of First Flight Courier. The Tribunal concurred with the Commissioner (Appeals) that penalty under Section 76 may not be justified if a penalty had already been imposed under Section 78. The Tribunal also referred to the Principles of Statutory Interpretation by Justice G.P. Singh, emphasizing that penal statutes reducing harshness are applicable to cases decided after the amendment, and Adjudicating Authorities are bound to follow such judgments.

Issue 2: Interpretation of the law prior to 16.05.2008 regarding simultaneous penalties

The Tribunal examined the legal provisions prior to 16.05.2008 and noted that the law was amended on that date to disallow simultaneous penalties. Referring to the judgment of the High Court of Punjab and Haryana, the Tribunal emphasized that penalties under Sections 76 and 78 cannot be imposed simultaneously for the period before the amendment. The Tribunal highlighted that the amendment reducing harshness in penal statutes should apply to cases decided after the amendment, as per the Principles of Statutory Interpretation. Consequently, the Tribunal dismissed the Revenue's appeal, affirming the decision of the Lower Appellate Authority and maintaining that penalties under Sections 76 and 78 cannot be levied concurrently before 16.05.2008.

This summary provides a detailed analysis of the judgment, addressing the issues involved and the Tribunal's interpretation of the legal provisions and relevant case law.