2014 (6) TMI 392 - AT - Service Tax

Simultaneous penalty - Penalty u/s 76 & 78 - whether penalty under section 76 & 78 of the Finance Act, 1994 for the period prior to 10.05.2008 can be imposed simultaneously on the assessee or not - Held that - Both sides produced certain decisions of the Hon ble High Court. As in the case of United Communication Udupi 2011 (10) TMI 163 - KARNATAKA HIGH COURT, the Hon ble High Court held that the liability of penalties cannot be imposed under section 76 and 78 of the Finance Act, 1994 simultaneously. But in the case of Krishna Poduval 2005 (10) TMI 279 - Kerala High Court wherein the Hon ble High Court of Kerala has held that penalty under section 76 & 78 of the Finance Act, 1994 can be imposed simultaneously and same view has been taken by the Hon ble Delhi High Court in the case of Bajaj Travels Ltd. 2011 (8) TMI 423 - DELHI HIGH COURT - Matter referred to larger bench.

Summary

The judgment involves the issue of whether penalty under section 76 & 78 of the Finance Act, 1994 can be imposed simultaneously on the assessee for the period prior to 10.05.2008. Different High Courts have given conflicting decisions on this matter. The case is referred to the Larger Bench of the Tribunal for a decision on this issue.