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TMI Blog2012 (9) TMI 813X X X X Extracts X X X X X X X X Extracts X X X X ..... said Act?" 2. We have heard Mr. Darshan M. Parikh, learned counsel appearing for the appellant in this Tax Appeal. The facts in brief are that M/s. Manan Motors Private Limited, Ahmedabad, (hereinafter referred to as 'the assessee' for short), is engaged in providing Services as Authorized Service Station, falling under the category of 'service of motor vehicles' and 'business auxiliary service'. The assessee has allowed financial institutions like ICICI and HDFC to keep their counters/desks for providing the suitable environment to them to boost up their business. In response the said financial companies were giving them a substantial amount under head 'commission/incentive/remuneration, etc., therefore, the assessee was liable to pay se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... day or at the rate of 2% of the Service Tax amount per month under section 76 of the Act was imposed. Penalty of Rs. 7,68,602/- was imposed under section 78 of the Act. An option was given to them to pay penalty of 25% if it is paid within thirty days. However, no penalty was imposed under sections 75A and 77 of the Act. 4. The assessee challenged the order dated 12.11.2009 passed by Joint Commissioner, Service Tax, by way of appeal before the Commissioner (Appeals), who by his order dated 16.03.2010 rejected the appeal. 5. The assessee thereafter filed an appeal before the CESTAT The Tribunal by its judgment dated 22.02.2012 has allowed the assessee's appeal by placing reliance on Circular No.137/167/2006-CX dated 03-Oct.-2007. The Trib ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e tax and interest much before the issuance of show cause notice and discharged 25% of the amount of service tax liability, and at that time, neither any penalty was levied by the appellant nor any quantum of penalty was fixed. Therefore, the assessee has not committed any illegality in not depositing any penalty amount. 7. For the aforesaid reasons, the penalty levied against the assessee in excess of 25% under sections 76 and 78 of the Finance Act, 1994, has rightly been set aside by the Tribunal. We do not find any illegality in the order of the Tribunal. The question raised by the assessee in our opinion does not raise any substantial question of law. We do not find any merit in this Tax Appeal. This Tax Appeal is accordingly dismissed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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