2011 (1) TMI 88 - AT - Service Tax

Waiver of penalty demand alongwith interest and penalty - Tribunal held that the penalty under Section 76 need not be imposed when the penalty under Section 78 has been imposed - Commissioner (Appeals) has relied on the decision of the Tribunal in the case of CCE,Ludhianavs. Silver Oak Gardens Resorts - no interfere with the order of the Commissioner (Appeals).

Summary

Issues: Appeal against setting aside penalty under Section 76 of the Finance Act, 1994.

In this case, the Appellate Tribunal CESTAT, New Delhi heard an appeal by the department against the order of the Commissioner (Appeals) setting aside the penalty under Section 76 of the Finance Act, 1994. The Tribunal considered the application for condonation of delay and allowed it as the appeal was filed within the stipulated time. The issue involved was deemed simple, leading the Tribunal to proceed with the disposal of the appeal. The original authority had confirmed a demand of Rs.10,67,181/- along with interest and imposed various penalties. The Commissioner (Appeals) upheld most penalties but set aside the penalty under Section 76 based on precedents like the case of CCE, Ludhiana vs. Silver Oak Gardens Resorts. The Tribunal noted that even for the earlier period, it had been held that penalty under Section 76 need not be imposed when penalty under Section 78 is imposed. As the decision in the Silver Oak Gardens Resorts case had not been set aside or stayed by a higher forum, the Tribunal found no valid reason to interfere with the Commissioner (Appeals)'s order. Consequently, the appeal was rejected, and the application for condonation of delay and stay petition were disposed of.