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TMI Blog2013 (12) TMI 623X X X X Extracts X X X X X X X X Extracts X X X X ..... brief are that Central Excise officers visited the factory premises in Jaipur on 30.5.2008. The unit is a Private Limited Company and engaged in the manufacturing of marble slabs & tiles. The officers conducted various checks over the records maintained by the firm and found that the firm was receiving the services from various transporters under the category of 'Goods Transport Agency Service' but had not paid any service tax on the payment of freight charges made to the transporters for inward and out ward transport during the period from 01.4.2007 to 31.5.2008. The GTA Service has been defined under: "Goods transport agency means any person who providers services in relation to transport of goods by road and issues consignm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to pay service tax under deemed category by treating service recipient as Service provider under Rule 2(1)(d)(v) of the service tax rules, 1994. As soon as it comes to the appellants notice that the service tax is payable they promptly deposited the service tax with interest and also submitted the return with penalty prescribed under Section 70 of the Finance Act, 1994. 6. Revenue submitted that ignorance of law is no excuse. He further submitted that records do not reveal that the appellants ever approached the Department for clarification with regard to their liability. 7. Heard both sides and perused the records from the records. It is evident that there is no dispute with regard to the liability of Service Tax. Rule 2(1)(d)(v) of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of service tax; therefore, they are liable for penal action under Section 76 and 78 of the Finance Act, 1994. Now the question is whether penalty under Section 76 and 78 both can be imposed simultaneously. In this regard, I rely upon the decision of the Hon'ble High Court of Kerala delivered in the case of Assistant Commissioner, Central Excise Vs. Krishna Poduval reported in 2006 (1) STR 185 (Ker) wherein is has been held that the penalty can certainly be imposed on erring persons under both the Section 76 and 78, especially since the ingredients of the two offences are distinct and separate." 10. In view of the above clear position I do not find any reason to interfere with impugned order. The same is upheld and appeal is rejected. (Pr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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