Case Law Details
Sagar Enterprises Vs CST (CESTAT Mumbai)
Penalty under Section 76 is imposed for default in payment of tax and, no mensrea is required to be proved for imposing such penalty. For mere default and delay in payment of tax, the liability to penalty arises. The Hon’ble High Court of Kerala in the case of Asst. Commissioner of Central Excise v. Krishna Poduval – 2006 (1) S.T.R. 185 (Ker.) has held that penalty under Section 76 of the Finance Act, 1994 can be imposed for mere default/delay in payment of Service Tax in addition to the penalty under Section 78 and these penalties are mutually exclusive and even if offences are committed in the course of same transaction or arise out of same act, penalty is imposable for ingredients of both offences.
FULL TEXT OF THE CESTAT JUDGEMENT
This appeal is directed against the order in appeal No PD/STC-I/533/ 2014 dated 02.05.2014 of the Commissioner (Appeals) Central Excise Mumbai – I. By the impugned order Commissioner (Appeal) as upheld the order in original No 02/ST II/ADL/YKA/2010-11 dated 22.04.2010 of the Additional Commissioner Service Tax Mumbai II holdings as follows:
“In view of the above, I confirm the Service Tax amounting to Rs 14,86,779/- (Rupees Fourteen lakhs eighty six thousand seven hundred and seventy nine only) under Section 73(2) of the Act. The interest at applicable rate is confirmed under Sec 75 of the Act.
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