PARADIGM INTERNATIONAL Vs. CCE

JUDGEMENT

(1.) APPEAL No. ST/698/2010 is by M/s. Paradigm International against the order of the Commissioner (A) No. 171/ 2010 dated 16.09.2010, challenging the penalty under Section 78, which was limited to 25% of the entire service tax amount involved. Appeal No. ST/709/2010 is by the department against the very same order challenging reduction of penalty from Rs. 3,14,842/ - to 25% of the said amount by the Commissioner (A) and against setting aside the penalty of Rs. 5,000/ - under Section 77.

(2.) HEARD both sides.

(3.) THE Ld. Advocate of the Appellant -Assessee reiterating the grounds of the appeal, submits that the EXIM Policy during the relevant period clearly envisaged that the intention of the Government was only to export the goods and not the taxes and duties thereon and in this regard he relies on para 2.48.3 in Annual Supplement for the year 2006 -07 to Foreign Trade Policy 2004 -09, which reads as under: