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TMI Blog2017 (6) TMI 377X X X X Extracts X X X X X X X X Extracts X X X X ..... completed the work to the tune of Rs. 3 Crores and received the payment from SISL, however, they had failed to discharge the tax liability thereon. It appeared to the Department that such failure was on account of suppression of facts. In adjudication proceedings, service tax demand of Rs. 23,45,419/- along with interest thereon, was confirmed by the original authority and in addition, penalty of Rs. 1,20,600/- under Section 77 (1) (a) of the Finance Act, 1994, penalty of Rs. 5000/- under Section 77 (2) ibid and equal penalty of Rs. 23,45,419/- under Section 78 ibid were imposed. On appeal, the Commissioner (Appeals) vide impugned order dated 23.09.2016 upheld the demand of tax liability, however set aside the penalty imposed under Section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... od, wherein it is indicated that service tax not paid by reason of fraud, collusion, mis-statement or suppression of facts, with intent to evade payment of service tax by an assessee, such person should pay tax liability and interest thereon and in addition, penalty equal to twenty-five percent. He submits that only pursuant to investigation it could be detected that appellants had received the entire amount from SISL. For these reasons Id. AR submits that there is no case for reduction in penalty. 4. Heard both sides and have gone through the facts of the case. 5. No doubt, if in case service tax has not been paid or short paid erroneously, the assessee on their own ascertainment, or on being informed by the departmental officers, if the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any of the provisions of this Chapter or the rules made thereunder, with intent to evade payment of service tax, by such person or his agent, to whom a notice is served under the proviso to sub-section (1) by the Central Excise Officer, such person or agent may pay service tax in full or in part as may be accepted by him, and the interest payable thereon under Section 75 and penalty equal to twenty five percent of the service tax specified in the notice or the service tax so accepted by such person within thirty days of the receipt of the notice." 6. From the above provisions of Section 73 (1A) relied upon by the Id. AR, it is obvious that penalty is very much imposable in this case. However, what has been mentioned is that "penalty equal ..... X X X X Extracts X X X X X X X X Extracts X X X X
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