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TMI Blog2013 (6) TMI 645X X X X Extracts X X X X X X X X Extracts X X X X ..... oject Ltd. During the course of audit the revenue authorities found this and noticed that the appellant has not deposited the service tax collected by him from M/s. Tata Project Ltd. into the government treasury. Show cause notice was issued. The appellant contesting the show cause notice on merits. The adjudicating authority after following the due process of law confirmed the demand of service tax of Rs.7,40,996/- along with interest and also imposed penalties under Section 76 & Section 77 of the Finance Act, 1944. Aggrieved by such an order, the appellant preferred an appeal before the first appellate authority. The first appellate authority after following the principles of natural justice, came to a conclusion that the service tax liab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat they are liable to pay the service tax on the said services and hence collected the same from their clients but did not pay to the Government of India. It is his submission that the penalties imposed under Section 76 & Section 78 are liable to be imposed on the appellant. 5. On careful consideration of the submissions made by both sides, I find that the first appellate authority in this case has come to a conclusion that the appellant has rendered the services which are taxable only in respect of one invoice i.e. invoice No.VN/295/A/CP dated 29.09.04 and has upheld the service tax liability of Rs.2,47,032/- along with interest and has upheld the penalty imposed under Section 76 & Section 78 of the Finance Act, 1944. 6. I find that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rdingly, respectfully following the judgment of the Hon'ble High Court of Gujarat in the case of Akash Fashions, I extend the benefit of payment of penalty of 25% of the amount of Rs.2,47,032/- to the appellant herein under the provisions of Section 78 of the Finance Act, 1944. The appellant should deposit an amount of penalty @ 25% of Rs.2,47,032/- within thirty days from the receipt of this order and on such compliance, the lower authorities will not insist upon collecting any further amount of penalty from the appellant. 9. In sum, the appeal filed by the appellant is partly allowed by upholding the penalty imposed under Section 76 and also under Section 78 but extending the benefit to discharge 25% of service tax as penalty. 10. The a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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