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TMI Blog2017 (1) TMI 169X X X X Extracts X X X X X X X X Extracts X X X X ..... Shri. Ch. Venkateswara Rao, Advocate for the Appellant Shri. Arun Kumar, Deputy Commissioner (AR) for the Respondent ORDER [ Order per: Sulekha Beevi, C.S. ] The above appeal is filed by appellant challenging the order passed by Commissioner (Appeals) who upheld the confirmation of service tax, interest and also the penalty imposed under Section 78 of Finance Act 1994, but however, set aside the penalty imposed under Section 76 of the Act. 2. The appellants are engaged in selling yarn to markets. On gathering intelligence that the appellants are not paying service tax on freight charges paid by them, the Department requested appellants to furnish the details. After repeated requests the appellants vide letter dated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mposed under Section 78. However, the penalty imposed under Section 76 was set aside. The appellants are now before the Tribunal against this order passed by Commissioner (Appeals). 5. On behalf of the appellant, the Ld. Counsel Shri. Ch. Venkateswara Rao, submitted that the appellant is not contesting the demand of service tax but is confining the challenge in the appeal on the penalty imposed only. He submitted that the appellant paid the entire demand of service tax to the tune of ₹ 11,87,373/- and interest even before the issuance of the Show Cause Notice. That therefore the equal amount of penalty imposed under Section 78 is highly harsh. He submitted that out of the entire demand an amount of ₹ 9,00,103/- was paid for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the appellant though obtained service tax registration in 2008 did not discharge the service tax liability regularly. It is seen that for the period 4/2009 to 3/2011 the appellants paid the service tax and filed ST-3 Returns. But they have deliberately either shown lesser taxable values in their Returns or paid less tax. For example for the year 2009-10 , the actual liability of service tax is ₹ 2,38,088/- as per the annexure enclosed to their letter dated 21.05.2012. However, they have paid only ₹ 1,67,449/- as service tax which was done by lowering the taxable value and accordingly the ST-3 Return was filed. The remaining amount of service tax of ₹ 70,638/- was paid by them only on 08.11.2011 when the issue was unde ..... X X X X Extracts X X X X X X X X Extracts X X X X
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