2009 (9) TMI 259 - AT - Service Tax

Penalty- section 76 and 78 not simultaneously imposed- Whether when there is no provision that penalty under both sections 76 and 78 cannot be imposed? In the light of the decision of Asstt. CCE v. Krishna Poduval 2006 3 STT 96, held that penalty u/s 76 restored and the revenue s appeal is allowed.

Summary

The Appellate Tribunal CESTAT, New Delhi ruled that penalty under section 76 for non-payment of service tax can be imposed even if penalty under section 78 has been imposed. The judgment favored the Department based on previous cases. The impugned order was set aside, and the penalty under section 76 was restored. The revenue's appeal was allowed.