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March 2012

(2012) 25 STR 36 (Tri.-Del.) — Hind Tele Links v. Commissioner of Central Excise, Jalandhar.

By Puloma Dalal, Jayesh Gogri
Chartered Accountants
Reading Time 2 mins
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Appellant providing promotion and marketing services to M/s. Bharti Cellular Ltd. — Taxable as BAS — Failed to pay service tax — Did not contest the demand and paid it as soon as it was brought to notice — Penalties imposed u/s.76, u/s.77 and u/s.78 for the non-compliance — Prayed for reduction in penalties imposed under different sections for the same offence — The option to deposit 25% of penalty within a period of 30 days granted — Penalty u/s.76 set aside.

Facts:
he appellant provided services relating to marketing and promotion to M/s. Bharti Cellular Ltd. taxable under the category of business auxiliary services. It was noted that the appellant did not contest the amount of service tax confirmed by the authority. However, the appellant prayed for reduction in the penalties imposed u/s.76, u/s.77 and u/s.78. Appellant pleaded for the option of payment of 25% of penalty within 30 days, which was not made available to the them before.

Held:
It was observed that penalties under two different sections for the same offence were not justified and hence, penalty u/s.76 was set aside. Penalty imposed u/s.78 was upheld with modification that only 25% of the amount to be deposited only if paid within 30 days from the receipt of the order. Lastly, penalty for non-filing of the return etc. u/s.77 was not interfered with.

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