9911796707
TMI Blog2007 (7) TMI 94X X X X Extracts X X X X X X X X Extracts X X X X ..... y was covered under service tax net from 1998. The appellant applied for the registration with the service tax authorities on 22-4-2003 and obtained the service tax registration. 3. On an intelligence, the officers visited the premises of the appellants in August 2005. On scrutiny of the records and investigation, it was found that the appellants had not paid service tax due from them for the period April 2000 to March 2004. It was also noticed that after taking registration in April 2003, the appellants were not filing the service tax returns in prescribed form and shown less value of the taxable services provided. On the conclusion of investigation, show cause notice was issued to the appellant demanding service tax payable by him for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e submission of the ld. Consultant that penalty imposed on them under Section 76, 77 78 is excessive and should be set aside, as they have already deposited the entire amount of service tax and interest thereof before the issuance of show cause notice. He relies upon the decision of the case of CCE v. Gaurav Mercantiles Ltd., as reported at 2005 (190) E.L.T 11 (Bom.). 5. Ld. SDR on the other hand submits that the issue is not as simple as it is being made out by the applicant. It is his submission that the appellants having taken registration in April 2003 should have paid the dues of service tax for the period prior to taking registration. It is also his submission that the appellants did not approach the department for classificat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... osed under Section 76 77, I find that the provisions of Section 76 and 77 are squarely applicable in this case. As such, I do not find any reason for interfering on the penalties imposed by the lower authorities on the appellants under Section 76 77. 9. As regards the penalty imposed under Section 78, it is seen that the appellants have been canvassing before the adjudicating authority as well as the Commissioner (Appeals), that they were not aware of the provisions of Service tax. It is also seen from the records that the appellants has been canvassing that they were not guided properly by the Consultant and they were under the impression that the service tax liability for the earlier period has to be paid as and when the payment f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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