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TMI Blog2008 (6) TMI 34X X X X Extracts X X X X X X X X Extracts X X X X ..... d. 20.6.2008 certified on 26.6.2008 in Appeal No. ST/30/2005) Shri S. Kothandaraman, Consultant for Appellant. Shri B.L. Meena, SDR for Respondent. [Order per P.G. Chacko Member (Judicial)] - The appellants had rendered "Clearing Forwarding Agent's Service valid to their clients viz. M/s. ACC Ltd. during 2002 2003 but had not paid the service tax. After investigations, the department issued show-cause notice dt. 29.3.2004 demanding service tax of Rs. 6,68,833/- from them und Section 73 (i) (a) of the Finance Act, 1994 and proposing penalties on them of under Sections 75A, 76, 77 78 of the Act. The notice also proposed the appropriate towards the above demand the amount of Rs. 5,86,804/- already paid by the party. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntent to evade payment of service tax. This allegation was upheld by the lower authorities without any justification. In this connection, the ld. Consultant refers to a letter dt. 31.1.2004 of ACC Ltd. addressed to M/ s. S.R. Agencies, Madurai (appellant). It is submitted that the appellants had duly acted upon their client's advice given in the above letter and had, accordingly, paid up the entire amount of tax. It is further submitted that their client had expressly offered reimbursement of the tax amount in the above letter and, therefore, there was no reason for the appellants to evade its payment to the Government. In other words, the department's allegation that the appellants had contravened legal provisions by committing default of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was no valid ground for imposition of penalty on the appellants under Section 78. However, the appellants have not been able to make out a valid case against the penalties imposed on them under other provisions. These penalties are relatable to the period of default of payment of service tax (2002 2003). For this very reason, the penalty imposed on the appellants under Section 75A cannot be resisted inasmuch as that section was omitted after the said period. 4. In the result, the penalty imposed on the appellants under Section 78 of the Finance Act, 1994 stands vacated while the other penalties remain. The impugned order shall stand modified to this extent. The appeal is disposed of. (Dictated and pronounced in open Court.) - - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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