9911796707
TMI Blog2010 (8) TMI 190X X X X Extracts X X X X X X X X Extracts X X X X ..... ellant. Shri K.P. Singh, SDR, for the Respondent. [Order (Oral)]. - This is an appeal against the order of the Commissioner (Appeals) No. 342/BPL/2009 dated 1-9-2009. 2. Heard both sides. 3. The relevant facts, in brief, are that the appellants who is a manufacturer of MS ingots and runner and riser are also rendering services. During the period 2006-2007 and 2007-08, the appella ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ioner (Appeals) has set aside the penalty imposed under Section 76. The party is in appeal against the penalties sustained by the Commissioner (Appeals) of Rs. 7,25,561/- under Section 78 of the Finance Act, 1994 and Rs. 1000/- under Section 77. 4.1 Learned Advocate submits that there was lot of confusion prevailing in the field regarding the scope of services of commission agent and whethe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ). 4.2 Alternatively, he submits that the original authority and the Commissioner (Appeals) have not given option to the appellants about availability of concessional penalty of 25% and therefore, they should be allowed to pay the concessional penalty as provided under first proviso to Section 11AC in the light of the decision of the Hon'ble High Court of Delhi in the case of K.P. Pouches L ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rom both sides. There is no dispute that the appellants were liable to pay service tax as Business Auxiliary services on service charges received by them as commission agent. The claim of the appellants that they were under bona fide belief that they were not liable to pay service tax is clearly contradicted by their own act of raising bills for the service tax which apparently stands paid to them ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Court of Delhi in the case of K.P. Pouches cited supra. In view of the above, the appeal is disposed of as follows :- (a) The penalties sustained by Commissioner (Appeals) under Section 77 and Section 78 are upheld. (b) The appellants is given option to pay a sum of Rs. 1,81,390.25 (Rupees One lakh eighty-one thousand three hundred ninety and twen ..... X X X X Extracts X X X X X X X X Extracts X X X X
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