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March 2012

(2012) 25 STR 178 (Tri-Ahmd.) — Rahul Trade Links v. Commissioner of Central Excise, Rajkot.

By Puloma Dalal, Jayesh Gogri
Chartered Accountants
Reading Time 1 mins
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Penalty — Non-payment of service tax — Separate penalties imposed u/s.76 and u/s.78 — Finding that assessee not having requisite mens rea — Tax paid with interest and penalty — Commissioner rightfully reduced penalty — No infirmity in the impugned order.

Facts:
The appellant was inter alia engaged in distribution for Tata Teleservices Ltd. on a commission basis. The assessee failed to pay service tax for the services rendered. The adjudicating authority confirmed the penalty and interest u/s.76 and u/s.78, but reduced the penalty. The appellant challenged the order and vehemently argued that equivalent penalty u/s.78 is not attracted.

Held:
The Tribunal observed that the penalties imposed under the abovementioned sections are clearly distinct even if the offences are carried out in the same transaction. The Tribunal dismissing the appeal held that the finding of the adjudicating authority was not shown to be perverse in any manner.

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