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Issues involved:
Interpretation of penalties under Section 76 and Section 78 of the Finance Act, 1994. Summary: The appellant sought interim stay of the impugned order and waiver of pre-deposit of penalty amounts imposed by the Commissioner under various sections of the Finance Act, 1994. Section 76 of the Act deals with failure to pay Service tax, imposing a penalty not less than Rs. 100 per day for non-payment, while Section 78 specifically addresses evasion of payment with a guilty mind, allowing for penalties up to twice the amount of tax evaded. The judgment clarified that penalties under these sections are mutually exclusive - if a person is found guilty under Section 78, no penalty can be imposed under Section 76 for the same evasion. In this case, penalties were imposed under both sections, which was deemed inappropriate. Considering the circumstances, the Tribunal directed the appellant to deposit Rs. 40,000 within six weeks to waive the pre-deposit of the remaining penalties. Failure to comply would result in dismissal of the appeal. The application was disposed of accordingly, with a compliance report scheduled for a specific date.
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