Order date – 03 November 2022

 Facts –

• The Appellant, City Gold Media Pvt Ltd, are engaged in providing taxable services of ‘Sale of Space and Time for Advertisement’ but they were neither registered with service tax department nor they were paying service tax and were also not filing service tax returns.
• On search of the appellant premises conducted on 14.02.2007, it was found that the appellant were engaged in providing the services of Sale of Space and Time for Advertisement. Accordingly, the show cause notice was issued for demanding service tax.
• Aggrieve appellant had filed an appeal

Issue – 

• Whether activities carried by appellant are liable to Service Tax and penalty under Section76, 77 and 78?

Order – 

• The Tribunal finds that as per the Commissioner (Appeals) order, it is recorded that the appellant accepted the liability and not contesting the same. It is clear that the appellant have not disputed the tax liability along with applicable interest.
• Relating to the penalty imposed on appellant under Section 76 the tribunal relied on the decision of the Hon’ble Gujarat High Court in the case of Raval Trading Company 2016 (42) STR 210-(Guj.), where it is held that simultaneous penalty imposed under Section 76 is not sustainable.
• As regard, the penalty under Section 77 and 78, we find that the entire case was made out on the search conducted by the departmental officer in the premises of the appellant, the appellant have never disclosed their activity before the department, therefore, they suppressed the fact from the department accordingly, the penalty under section 77 and 78 were rightly imposed.
• Hence, the Tribunal upheld the penalty imposed under Section 77 and 78 and appeal is partly allowed.