2013 (5) TMI 202 - AT - Service Tax

Penalties u/s 78 of the Finance Act - Held that - The issue is no more res integra and stands settled by the Tribunal s decision in the case of Nawanshahr Cooperative Sugar Mills Vs. CCE Jalandhar 2008 (6) TMI 7 - CESTAT NEW DELHI in their judgement dated 20.6.2008 wherein held just because the storage period of free sale sugar had to be extended at the behest of the GOI, neither the Appellant become storage or warehouse keeper nor the GOI become their client. As Revenue in their appeal memo is not disputing the applicability of the above relied upon decision of the Tribunal but he contended that the stay order has not been accepted by the Department and appeals have been filed before the Punjab & Haryana High Court. In as much as there is no stay of the order of the Tribunal by the Hon ble High Court and the issue stands decided no reason to interfere with the impugned order of the Commissioner (Appeals). Accordingly, both the appeals filed by Revenue are rejected

Summary

The Appellate Tribunal CESTAT, New Delhi, in 2013, disposed of two appeals by the Revenue as they arose from the same impugned order where penalties under Section 78 of the Finance Act were set aside by the Commissioner. The Commissioner noted that the issue was settled by a previous Tribunal decision. The Revenue did not dispute the decision's applicability but mentioned appeals filed before the Punjab & Haryana High Court. As there was no stay order from the High Court and the issue was decided, the Tribunal rejected both Revenue appeals.