ORDER
T.K. Jayaraman, Member (T)
1. In terms of the impugned order R. A. No. 7/2007 dated 22.1.2007 passed by the Commissioner of Service Tax, Bangalore, the appellant is required to deposit the following amounts.
(i) Penalty of Rs. 200/- per day under Section 76.
(ii) Penalty of Rs. 1000/- under Section 77.
(iii) Penalty of Rs. 9/- lakh under Section 78.
2. The learned Counsel who appeared on behalf of the appellants stated that these penalties have been imposed after review of the Order-in-Original passed by the Commissioner of Service Tax. He said that the entire tax amount was paid much before the issue of show cause notice and even the leviability to Service Tax is debated. The Original Authority after considering the facts dropped the penalty proceedings. However, after review of the Order-in-Original, all the above mentioned penalties have been imposed. The learned Counsel pointed out that there are a large number of decisions which hold that once the Adjudicating Authority dropped the penalty proceedings, it is not open for the Review Authority to impose them again.
3. On a very careful consideration of the issue, I find that as the appellants had already paid the entire tax amount much before the issue of show cause notice, there is justification for full waiver of penalties imposed. Therefore, I order full waiver of the deposit of penalties imposed till the appeal is decided.
(Pronounced and dictated in open Court)